Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) introduced late Tuesday an amendment to permanently reform the federal estate tax.

The proposal would require the Senate Finance Committee to amend H.R. 5297, the Small Business Lending bill, to permanently set the estate tax rate at 35 percent, with a $5 million exemption amount phased in over 10 years and indexed for inflation. It would also provide a “stepped up basis” for inherited assets.

“Uncertainty in the estate tax law has caused incredible difficulties for these individuals, which is why I have fought for a quick resolution to the issue that is both permanent and fair. One way to improve upon an already strong legislative initiative that includes tax incentives and a number of other benefits for small businesses is to ensure that we reach a permanent solution on the estate tax to provide small business owners and famers with the certainty they need,” Lincoln said.

The American Farm Bureau Federation strongly backs the Lincoln-Kyl amendment and is urging the Senate to pass it. Permanent estate tax reform is a Farm Bureau priority.