The U.S. House of Representatives has voted to make current estate tax laws permanent, potentially ending confusion and changes to the law’s provisions over the next two years.

Under current law, the estate tax is set to disappear in 2010 and return the following year at 2001 levels.

On a 225-200 vote, the House passed HR 4154, sponsored by Rep. Earl Pomeroy (D-N.D.) calling for the permanent extension of the current estate tax laws.

The Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009 must obtain the approval of the Senate and President Barack Obama. Because of a procedural matter, the bill could face an uphill battle in the Senate, experts say.

The House bill includes a permanent $3.5 million federal estate tax exemption and sets the maximum gift tax rate and estate tax rate at 45%.

The estate tax is scheduled to be repealed in 2010 and return in 2011 at the levels set in 2001, meaning a 55% rate and a $1 million exemption.

Robert Rusbuldt, president and CEO of the Independent Insurance Agents & Brokers of America, called the House bill “a good step in the right direction, more is needed.”

His organization is asking Congress “significantly reform the estate tax to encourage investment and growth in small business. This reform should come in the form of a decrease in the estate tax rate and/or increase in the exemption amount and should be indexed for inflation for the future,” Rusbuldt said in a statement.

The Big I joined 40 business trade groups earlier this year to create the Business Estate Tax Coalition, which favors passage of a a bipartisan amendment sponsored by Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.). Passed by the Senate during congressional budget debate, the amendment would reduce the top rate to 35% and increased the exemption to $5 million.

“The estate tax disproportionately impacts small and family-owned businesses that serve local communities and fuel our economy,” said Charles Symington, Big I’s senior vice president of government affairs.

“Without real permanent relief, family-owned small businesses are unable to plan ahead and make important business decisions. Many of these businesses are asset-rich, yet lack liquidity to pay estate taxes when an owner passes away. There is evidence that the estate tax hinders the perpetuation of family-owned businesses because survivors are often forced to sell the business to pay their tax,” Symington added.