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.

This is a House Resolution (H. Res. 206) introduced in the 119th Congress that articulates congressional support for preserving the “stepped-up basis” provision under section 1014 of the Internal Revenue Code. The resolution argues that adjusting an inherited asset’s tax basis to its fair market value at the time of the owner’s death helps family-owned farms and small businesses transfer ownership to the next generation without facing large capital gains taxes. It cites data that a large share of farms and small businesses are family-owned and warns that eliminating stepped-up basis could raise tax burdens for many midsized farms, complicating or jeopardizing generational transfers. The measure is non-binding and serves as a statement of sentiment by the House, not a change in law. It was introduced March 10, 2025, and referred to the Ways and Means Committee. Key points in this resolution include recognizing the importance of stepped-up basis, opposing efforts to impose new taxes on family farms or small businesses, and stressing the role of such tax rules in enabling ongoing generational transfers of family-owned operations.