WASHINGTON - The House's action in early June to support a bill calling for the removal of the federal estate tax sparked the hopes of many in the rental and construction industries, yet that enthusiasm may be short-lived.

By a vote of 279-136, the House passed HR 8, which, if enacted, would eliminate the estate tax over a 10-year period by gradually lowering tax rates.

The measure, introduced by Jennifer Dunn, R-Wash., and John Tanner, D-Tenn., and passed by the House on June 9, garnered the support of many industry trade groups, including the Associated Equipment Distributors, the Construction Industry Manufacturers Association and the American Rental Association, which lobbied against the adverse effects of the current estate tax.

"It has had a devastating effect on family businesses," said Christian Klein, AED's associate counsel, "and the vote shows that estate tax is no longer a partisan issue."

The ARA expressed similar enthusiasm but said hopes of a long-term solution are slim at best.

Mike Moore, the association's director of field services, said President Clinton has already vowed to veto the bill but that ARA members could still play a role in the final outcome.

"Our members are watching the bill just like we are, and we will let our feelings be known (on the bill's importance) when it gets to the president's desk," Moore said. "But whether that will make a difference remains to be seen."

A companion bill is before the Senate, but there is no timetable for action. The AED, is placing faith in earlier congressional actions involving construction-related bills, Klein said. In April 1996, highway trust bill HR 842 passed the House by a similar margin to the estate tax vote, and two years later it was incorporated into TEA-21.

"It certainly would help family businesses especially in the event a family member (who owns a rental company) dies unexpectedly," Moore said. "The IRS just comes in and takes everything because they don't know the rental business."