Bill > HR2918

This bill, known as the Family Business Legacy Act of 2025, amends the Internal Revenue Code to create a new tax provision that allows for the deduction of certain bequests from a decedent's taxable estate. Specifically, the bill permits taxpayers to deduct the full value of bequests (transfers of property through a will) made to specific types of tax-exempt organizations, namely those classified under sections 501(c)(4), 501(c)(5), and 501(c)(6) of the tax code. These typically include social welfare organizations, labor unions, and business leagues. The bill includes several important provisions: it considers property subject to powers of appointment as part of the bequest, allows for the reduction of the deduction if estate taxes are payable out of the bequest, limits the deduction to the actual value of transferred property, and includes safeguards to prevent inappropriate deductions by requiring that any secondary interests in the property meet specific qualification standards. The changes will take effect for estates of individuals dying or bequests made after December 31, 2025, providing clear guidance for future estate planning and potential tax strategies for businesses and organizations.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2918/all-info