Congress·In Committee·H.Res. 206

Recognizing the importance of stepped-up basis under section 1014 of the Internal Revenue Code of 1986 in preserving family-owned farms and small businesses.

Tax Rules for Inherited Farms and Small Businesses

about 1 year ago·View on Congress.gov·Read full text

This bill is currently in the early stages of the legislative process. It has been sent to the House Committee on Ways and Means for review. No further actions are scheduled at this time.

Legislative Progress

House

Senate

President

Law

Could go either way

This is a non-binding resolution that expresses an opinion rather than changing the law. While it has support from both parties, it is a symbolic gesture that does not require action from the Senate or the president.

Key Points

This resolution asks the House of Representatives to support a tax rule called stepped-up basis. This rule helps people who inherit a family farm or business by resetting the value of the property to what it is worth today instead of what it cost many years ago.
If this tax rule were removed, people inheriting land or equipment might have to pay very high taxes on the growth in value that happened while the previous owner was alive. This could force some families to sell their farms or businesses just to pay the government.
The resolution notes that 98 percent of American farms are family-owned. Research shows that more than half of midsized farms would face much higher tax bills if this rule were eliminated, making it harder to keep the business in the family.
By passing this, the House would officially state that it opposes new taxes on family farms and recognizes how important it is for these businesses to be passed down from one generation to the next.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

1 milestone2 actions

Mar 10, 2025House

Referred to the House Committee on Ways and Means.

Mar 10, 2025

Submitted in House

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

Recognizing the importance of stepped-up basis under section 1014 of the Internal Revenue Code of 1986 in preserving family-owned farms and small businesses.

Bill NumberHRES 206

Congress119th Congress

ChamberHouse of Representatives

Latest ActionReferred to the House Committee on Ways and Means.