PRIA Logo™
119-hr-2918119th CongressWALLET

Family Business Legacy Act of 2025

Sponsored By: Representative Steube, W. Gregory [R-FL-17]

Introduced

Summary

Creates an estate tax deduction for bequests to certain tax-exempt organizations. This bill would let estates subtract gifts to organizations exempt under section 501(a) and described in paragraph (4), (5), or (6) of section 501(c) when calculating the taxable estate.

Show full summary
  • Estates and families: Estates that leave property to the specified organizations could reduce their taxable estate, which may lower estate tax owed. The rule applies to decedents dying or transfers made after December 31, 2025.
  • Tax-exempt organizations: Bequests to organizations described in 501(c)(4), (5), or (6) would be treated as deductible for estate-tax calculation, making such gifts more tax-favored for donors.
  • Estate administration and valuation: The deduction cannot exceed the value included in the gross estate and is reduced if death taxes are paid out of the bequest. An anti-abuse rule disallows deductions for split transfers unless the interest is a qualified interest valued under section 7520, and property included under powers of appointment is treated as a bequest for these rules.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Estate tax break for certain nonprofit bequests

This bill would let estates deduct bequests to certain tax‑exempt groups (501(c)(4), (5), or (6)). The deduction could not be larger than the value included in the estate. If estate or inheritance taxes are paid out of those bequests, the deduction would be reduced by those taxes. If the same property also goes to a non‑qualifying person for less than full value, no deduction would be allowed unless the nonprofit’s share is a qualified interest valued under IRS rules (with some split‑interest exceptions in current law). Property included through a power of appointment would be treated as a bequest for this purpose. These rules would apply to deaths or transfers after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Steube, W. Gregory [R-FL-17]

FL • R

Cosponsors

  • Rep. McCormick, Richard [R-GA-7]

    GA • R

    Sponsored 4/14/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation