A Senate panel’s recently adopted budget resolution would reinstate the federal estate tax at 2009 levels for two years. The resolution is non-binding.

The House has not yet approved a budget resolution. However, it previously passed HR 4154 (“Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009”) that repeals provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) eliminating the tax on estates and the step-up in basis provision for property acquired from a decedent for estates of decedents dying after 2009 (thus retaining the estate tax provision in effect in 2009).

HR 4154 further declares the “sunset provision” of EGTRRA shall not apply to the estate tax provision of that Act (thus preventing a reversion to estate tax provisions in effect prior to its enactment).