Bill · H.R. 2918· House(119-HR-2918)
Family Business Legacy Act of 2025
- Introduced
- 4/14/2025
- Last activity
- 4/14/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- W. Steube
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Family Business Legacy Act of 2025 seeks to amend the Internal Revenue Code of 1986. It aims to exclude bequests made to certain exempt organizations from the total value of a taxable estate. This includes deductions for transfers to organizations described in section 501(c) paragraphs (4), (5), or (6). The bill also addresses how powers of appointment and death taxes are handled regarding these bequests. These changes would apply to estates of people who die or transfers made after December 31, 2025.
Yes· 3 of 5
Would high-income households be better off under this?+5
High income households benefiting from estate transfers can leverage new deductions to reduce their tax liability.
Would people with substantial wealth be better off under this?+5
The bill allows high net worth individuals to reduce their taxable estate by making bequests to specific exempt organizations.
Would the very wealthiest people be better off under this?+5
The bill provides significant estate tax relief for individuals making large bequests to exempt organizations.
The opposite
Does this raise taxes on the highest earners?-3
The bill reduces the taxable estate value for those leaving money to certain exempt organizations, effectively lowering death taxes for wealthy individuals.
Who it would affect, and how
Potential Positive Impacts for People
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Taxable Estate Reductions: Individuals leaving money or property to specific exempt organizations can deduct the amount of those bequests from the value of their gross estate. This reduces the overall value used to calculate the tax imposed by section s2001 (Section 2, subsection a).
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Treatment of Powers of Appointment: Property received through certain powers of appointment would be treated as a bequest, potentially allowing for the same tax benefits (Section 2, subsection b).
Potential Negative Impacts for People
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Deduction Reductions due to Death Taxes: If death taxes or other estate/inheritance taxes are required to be paid out of the bequests themselves, the amount available for deduction is reduced by the amount of those taxes (Section 2, subsection c).
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Deduction Limitations: The amount of the deduction for any transfer cannot exceed the actual value of the property that was required to be included in the gross estate (Section 2, subsection d).
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Disallowance of Deductions: A deduction may be denied if a person receives an interest in property that was not passed through for "adequate and full consideration in money or money's worth," unless the interest meets specific qualified standards (Section 2, subsection e).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Billionaires+5Good For High Income Households+5Good For High Net Worth Individuals+5Good For Ultra High Net Worth Individuals+5
- Economy And Finance
- Reduces Estate Tax+5Increases Wealthy Taxes-3
- 4/14/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Richard McCormickRepublican · Georgia