H.R.1, the budget reconciliation bill approved by the House on May 23, includes a provision that permanently increases the estate tax exemption to $15 million ($30 million for married couples). The $15 million exemption amount is indexed for inflation with a base year of 2025.

If enacted, the increase in the estate tax exemption would take effect for decedents dying and gifts made in calendar year 2026.

Prospects: While there are no guarantees in this reconciliation bill process, prospects for this provision are good. Most Republicans support at least an increase in the exemption amount. However, key GOP Senators (including Majority Leader Sen. John Thune (R-SD)), would like to go further, and eliminate the estate tax entirely. But, Sen. Thune has said that he expects the estate tax provision to remain as it is written in the House bill.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.