864 / What is the Section 2012 credit for gift tax that can be taken against the federal estate tax?

A credit is allowed for federal gift tax paid on property transferred by the decedent during life but included in the gross estate, but only as to gifts made on or before December 31, 1976.¹ The credit cannot exceed an amount which bears the same ratio to the estate tax imposed (after deducting the unified credit and the credit for state death taxes) as the value of the gift(s) (at time of gift or at time of death, whichever is lower) bears to the value of the gross estate minus charitable and marital deductions allowed.² In the case of (pre-1977) “split gifts” made by the decedent and his consenting spouse (see Q 905), the gift taxes paid with respect to both halves of the gift are eligible for the credit.³