119-hr2918

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2918 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2918

To amend the Internal Revenue Code of 1986 to exclude from the value of 
 taxable estates bequests to certain exempt organizations.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 14, 2025

 Mr. Steube (for himself and Mr. McCormick) introduced the following 
 bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

To amend the Internal Revenue Code of 1986 to exclude from the value of 
 taxable estates bequests to certain exempt organizations.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Family Business Legacy Act of 
2025''.

SEC. 2. EXCLUSION OF BEQUESTS TO CERTAIN EXEMPT ORGANIZATIONS FROM 
 VALUE OF TAXABLE ESTATE.

    (a) In General.--Part IV of subchapter A of chapter 11 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``

SEC. 2059. BEQUESTS TO CERTAIN EXEMPT ORGANIZATIONS.

 ``

    (a) In General.--For purposes of the tax imposed by 

section 2001, 
the value of the taxable estate shall be determined by deducting from 
the value of the gross estate the amount of all bequests, devises, or 
transfers to or for the use of any organization exempt from tax under 

section 501

    (a) and described in paragraph

    (4) ,

    (5) , or

    (6) of 

section 501
            (c) .
 ``

    (b) Powers of Appointment.--Property includible in the decedent's 
gross estate under 

section 2041 (relating to powers of appointment) 
received by a donee described in this section shall, for purposes of 
this section, be considered a bequest of such decedent.
 ``
            (c) Death Taxes Payable Out of Bequests.--If the tax imposed by 

section 2001, or any estate, succession, legacy, or inheritance taxes, 
are, either by the terms of the will, by the law of the jurisdiction 
under which the estate is administered, or by the law of the 
jurisdiction imposing the particular tax, payable in whole or in part 
out of the bequests, legacies, or devises otherwise deductible under 
this section, then the amount deductible under this section shall be 
the amount of such bequests, legacies, or devises reduced by the amount 
of such taxes.
 ``
            (d) Limitation on Deduction.--The amount of the deduction under 
this section for any transfer shall not exceed the value of the 
transferred property required to be included in the gross estate.
 ``

    (e) Disallowance of Deductions in Certain Cases.--Where an 
interest in property (other than an interest described in 

section 170

    (f)

    (3)
        (B) ) passes or has passed from the decedent to a person, or 
for a use, described in subsection

    (a) , and an interest (other than an 
interest which is extinguished upon the decedent's death) in the same 
property passes or has passed (for less than an adequate and full 
consideration in money or money's worth) from the decedent to a person, 
or for a use, not described in subsection

    (a) , no deduction shall be 
allowed under this section for the interest which passes or has passed 
to the person, or for the use, described in subsection

    (a) unless such 
interest, whether in the form of a remainder interest, lead interest, 
or any other interest, is in the form of qualified interest (within the 
meaning of 

section 2702

    (b) ) and valued under the rules of 

section 7520.''.

    (b) Conforming Amendment.--The table of sections for part IV of 
subchapter A of chapter 11 is amended by inserting at the end the 
following new item:

``

Sec. 2059. Bequests to certain exempt organizations.''.
            (c) Effective Date.--The amendments made by the section shall apply 
to estates of decedents dying or bequests, devises, or transfers made 
after December 31, 2025.
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