(b)(1) The provisions of subsection (a) notwithstanding, the value of the gross estate, for the purposes of parts 3-5 of this chapter, may be determined, if the executor or administrator so elects, by valuing all the property, real and personal, included in the gross estate as follows:

(2) In the event of an election as provided for in this subsection (b), there shall be no deduction allowed on account of property with respect to which a deduction is claimed under § 67-8-315 in an amount greater than the value declared for the same property in determining the gross assets of the estate.

(c)(1) Notwithstanding subsection (a), in any case of an estate where an executor could elect, without regard to § 2032A(b)(1)(C)(ii) and § 2032A(c)(6)(B) of the Internal Revenue Code, codified in 26 U.S.C. § 2032A(b)(1)(C)(ii) and (c)(6)(B), relative to material participation in the operation of the farm or other business by the decedent or members of the decedent's family, the special valuation for farm or other property under § 2032A of the Internal Revenue Code, such special valuation shall also be available to the executor for Tennessee inheritance tax valuation purposes. For such purposes, the executor and any other person shall be subject to all conditions and limitations set out in § 2032A, with the exception of § 2032A(b)(1)(C)(ii) and § 2032A(c)(6)(B), which shall not be applicable. In addition, a lien shall arise in favor of the state comparable to that arising in favor of the United States under § 6324B of the Internal Revenue Code, codified in 26 U.S.C. § 6324B, and such lien shall be subject to the filing and priority provisions of § 67-1-1403.

(2) The commissioner shall prescribe procedures to provide that, in any case in which the personal representative makes a timely election under this subsection (c) and substantially complies with the federal regulations pertaining to the election but the notice of election as filed does not contain all required information, or the signatures of one (1) or more necessary persons are not included on the agreement provided for in this subsection (c), or the agreement does not contain all required information, the personal representative is to have reasonable time, not exceeding ninety (90) days, after notification of such failure or other deficiency, in which to provide such information or signatures. The provisions hereof shall apply to the estates of all decedents dying after December 31, 1976.