House Passes Estate Tax Extension

The House on December 3, 2009, passed the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Bill of 2009 (H.R. 4154) by a vote of 225 to 200. The legislation repeals the repeal of the estate tax and introduction of carryover basis as enacted in 2001 and establishes a $3.5 million exclusion amount and top estate tax rate of 45 percent. All of the Republicans in the House were joined by 26 Democrats in opposing the measure. The fate of the legislation in the Senate is uncertain, with some Democrats favoring a one-year extension rather than a permanent extension of the 2009 estate tax exemption amount and top tax rate.