Little Apple Times

U.S. Representatives, led by Tracey Mann of Kansas, have reintroduced legislation to preserve the stepped-up basis provision in the tax code. This measure allows heirs to adjust the cost basis of inherited assets like land and equipment to their fair market value, preventing them from paying capital gains taxes on these assets. The legislation was introduced ahead of National Agriculture Day and has bipartisan support.

Rep. Mann emphasized the importance of this provision for family-owned farms and businesses, stating, “More than 98% of all American farms and 90% of American businesses are family-owned and operated." He added that eliminating the stepped-up basis would "destroy the livelihoods of producers and small business owners in Kansas and across the country."

Rep. Angie Craig highlighted her commitment to making it easier for Minnesota's family farmers to pass operations onto future generations. "I'm proud to be working across the aisle to preserve the stepped-up basis for the next generation," she said.

Jim Costa from California pointed out that over 90% of farms nationwide are family-owned, with family farms being central to economies like that of San Joaquin Valley. He stated that preserving this tax provision ensures these entities can thrive.

Bob Latta from Ohio expressed concern about rural Americans potentially losing this crucial estate tax provision. He remarked on its importance for generational transfers in small family-owned farms.

The resolution commits the House to support preserving stepped-up basis and opposes new taxes on family farms or small businesses. It is backed by several other representatives including Brad Finstad, Randy Feenstra, Dan Meuser, Russ Fulcher, Ann Wagner, Claudia Tenney, Dan Newhouse, Chuck Fleischmann, Mark Alford, John Moolenaar, Sam Graves, Frank Lucas, Keith Self, Michael Guest, Derek Schmidt, Mary Miller, and John Rose.

Mark Alford from Missouri emphasized how critical this provision is for passing down legacies without burdensome taxes: "Preserving the stepped-up basis is not just about economics—it’s about protecting the American Dream for future generations."

Rep. Moore also voiced his opposition against imposing new taxes on family-owned entities: "I am proud to cosponsor House Resolution 206."

Tracey Mann has been a consistent advocate against efforts by President Biden's administration that threaten this tax provision since his election to Congress. He previously introduced related legislation in September 2021 and March 2022.