In Senate Small Business Bill Does Not Include GRAT Provision, Estate Tax Questions Remain (6/30/10), Policy and Taxation Group reported that the Senate version of H.R. 5297 no longer includes the restrictions against grantor retained annuity trusts.
 This news might seem odd. I previously blogged that the Senate version of H.R. 5297 contains restrictions on GRATs: H.R. 5486, which would restrict GRATs, has been added as a new matter to the end of H.R. 5297, which the House passed on June 17, 2010 (6/18/10). Furthermore, all versions of H.R. 5297 that are currently available on Thomas.gov indicate that the restrictions on GRATs are in section 531 of the Senate version of the bill.
[2.1] In an e-mail answering my inquiry, Jeff Cook (President and CEO of Policy and Taxation Group) explained, “The Senate is proceeding with a Baucus substitute for the bill, and the substitute does not include the GRAT provision.”
[2.2] On June 29, 2010, the Senate Committee on Finance published a summary and text of amended H.R. 5297:
- Summary of the Small Business Jobs Act [379.3 KB]
- Legislative Text of the Small Business Jobs Act. [362.8 KB]
Restrictions on GRATs are longer among the offsets.
[2.3] On June 30, 2010, the Congressional Budget Office published estimated direct spending and revenue effects for Senate amendment 4402, a substitute for H.R. 5297: H.R. 5297, Small Business Jobs Act of 2010(PDF).
 The post by Policy and Taxation Group further informs that despite the latest amendment being passed, “estate tax questions remain.” The amended Senate version of the bill has to be reconciled with the House version of the bill, which does include restrictions on GRATs.
(Special thanks to Jeff Cook for explaining the status of the law.)