Steube Introduces Family Business Legacy Act
WASHINGTON — U.S. Representative Greg Steube (R-Fla.) yesterday introduced the Family Business Legacy Act to bring parity to the tax code between estate and gift taxes.
This bill will clarify the tax code for small and family-owned businesses after more than a decade of undue burdens and confusion. In 2010, the Internal Revenue Service exploited ambiguities in the law to try and impose a gift tax on donations to 501(c)(4) organizations. Congress responded by passing the Protecting Americans From Tax Hikes Act (PATH) in 2015 to roll back this overreach by the IRS. Ten years later, additional action is needed to prevent the IRS from potentially using the estate tax to penalize small and family-owned businesses.
The Family Business Legacy Act solves this problem by establishing an estate tax deduction for contributions to 501(c)(4), (c)(5), and (c)(6) organizations to protect small and family-owned businesses from unfair gift taxation by the IRS.
“Small and family-owned businesses do more than just create jobs. Their support to charitable organizations and causes represents the best of the American spirit,” said Rep. Steube. “Restoring parity between state and federal tax laws not only makes good business sense, but also reaffirms the critical role that small and family-owned enterprises play in our society. My bill will guarantee contributions to 501(c)(4), (c)(5), and (c)(6) organizations are no longer subjected to gift taxes.”
Rep. Steube is co-leading this legislation alongside Representative Rich McCormick (R-Ga.).
Supporting organizations include: National Taxpayers Union, Taxpayers Protection Alliance, Americans for Limited Government, American Commitment, Center for a Free Economy, Center for Individual Freedom, Consumer Action for a Strong Economy, Frontiers of Freedom, Small Business & Entrepreneurship Council, American Association of Senior Citizens, and 60 Plus Association
Center for a Free Economy
“CFE applauds Congressman Steube for helping to simplify the estate and gift tax system. In 2015, Congress clarified that gifts to 501c4 and similar organizations will not count against a taxpayer’s gift tax exemption. A similar clarification for estates is now needed, and this bill provides certainty to family businesses hoping to carry on their legacy through bequests to the organizations of their choice. As a tax practitioner and enrolled agent, I appreciate Congressman Steube’s efforts to simplify the tax code and provide predictability to the small businesses that I work with.” –Ryan Ellis, President, Center for a Free Economy
Consumer Action for a Strong Economy
“The Family Business Legacy Act strikes a balance between supporting small businesses and maintaining transparency in our tax system. By allowing donations to trusted nonprofit organizations without estate tax penalties, it empowers business owners to give back while preserving their long-term plans. Simplifying the tax code also benefits consumers by promoting stable, community-rooted enterprises.” —Matthew Kandrach, President, Consumer Action for a Strong Economy
Family Business Coalition
“The Family Business Legacy Act will simplify the current estate and gift tax laws to ensure that families are able to donate to organizations of their choice through gifts or bequests. While the 2015 PATH Act clarified that families may gift to 501c4, c5, and c6 organizations, similar clarification is needed for estates. We applaud Congressman Steube for working to streamline the tax code for family-owned businesses across the country.” —Palmer Schoening, Chairman, Family Business Coalition
National Taxpayers Union
“The Family Business Legacy Act is a much needed, commonsense reform that protects taxpayers from unnecessary complexity and unintended penalties. By clarifying that donations to 501(c)(4), (5), and (6) organizations don’t count against the estate tax exemption, it ensures fairness and supports civic engagement. Aligning gift and estate tax laws also streamlines planning, reducing burdens for hardworking families and small business owners alike.” —Brandon Arnold, Executive Vice President, National Taxpayers Union
Small Business and Entrepreneurship Council
“SBE Council is proud to support the Family Business Legacy Act which ensures that small business owners can support the causes that matter to them, without risking their estate tax exemption. By aligning gift tax laws with estate tax laws, the bill simplifies succession planning, making it easier for family businesses to prepare for the future. This clarity is essential for those looking to pass their businesses on to the next generation with confidence.” —Karen Kerrigan, President and CEO, Small Business and Entrepreneurship Council
Taxpayers Protection Alliance
“The Taxpayers Protection Alliance strongly supports Rep. Greg Steube’s Family Business Legacy Act, which would allow for an estate tax deduction for charitable contributions. Complying with current estate tax law costs American families billions of dollars per year and destroys intergenerational wealth building, forcing some families to sell assets. The FBLA creates much-needed parity between gift taxes and estate taxes, providing predictability and tax simplification for the next generation, while supporting taxpayers’ First Amendment right to donate to organizations they support.” —David Williams, President, Taxpayers Protection Alliance
Read full bill text here.
