What This Bill Does
This is a House resolution that expresses support for preserving the stepped-up basis tax rule. The resolution opposes new taxes on family farms and small businesses and recognizes the importance of passing these operations to the next generation.
Who It Affects
Family farmers, ranchers, agribusinesses, small business owners, and people who inherit farm land, equipment or buildings.
Key Provisions
The House of Representatives supports the preservation of the stepped-up basis under section 1014 of the Internal Revenue Code. (Preamble)
The House of Representatives opposes any efforts to impose new taxes on family farms or small businesses. (Preamble)
The House of Representatives recognizes the importance of generational transfers of farm and family-owned business operations. (Preamble)
What Changes
Not specified in bill text. This resolution expresses the House's position on a tax rule but does not change any laws or create new requirements.
Important Definitions
Stepped-up basis: A rule that allows people who inherit assets such as land, equipment or buildings to adjust the cost basis (the original purchase price used for tax calculations) of the asset to match its fair market value (what it is worth at the time of inheritance).
IV
118TH CONGRESS
1ST SESSION
H. RES. 237
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.
IN THE HOUSE OF REPRESENTATIVES
MARCH 21, 2023
Mr. MANN (for himself, Mr. COSTA, Mr. LATTA, Ms. CRAIG, Mr. SMITH of
Nebraska, Mr. PANETTA, Ms. STEFANIK, Mr. THOMPSON of Pennsyl-
vania, Mrs. STEEL, Mr. KUSTOFF, Mr. CAREY, Mr. FEENSTRA, Mr.
MURPHY, Mr. FERGUSON, Ms. TENNEY, Mr. MOORE of Utah, Mr. JOHN-
SON of Louisiana, Mrs. MCCLAIN, Mr. CRAWFORD, Mr. WITTMAN, Mrs.
MILLER-MEEKS, Mr. NORMAN, Mr. STEUBE, Mr. MOOLENAAR, Mr.
MOORE
of Alabama, Mr. MILLER
of Ohio, Mr. LATURNER, Mr.
NEWHOUSE, Mrs. MILLER of West Virginia, Mr. AUSTIN SCOTT of Geor-
gia, Mr. ELLZEY, Mrs. MILLER of Illinois, Mr. HIGGINS of Louisiana,
Mr. BERGMAN, Mr. FINSTAD, Mr. ALFORD, Mrs. HARSHBARGER, Mrs.
FISCHBACH, Mr. RESCHENTHALER, Mr. GUEST, Mr. C. SCOTT FRANK-
LIN of Florida, Mr. LAHOOD, Mr. JOHNSON of South Dakota, Mrs.
HINSON, Mr. ROSENDALE, Mr. LAMALFA, Mr. DAVIDSON, Mr. DUARTE,
Mrs. CAMMACK, Mr. JACKSON of Texas, Mr. KELLY of Mississippi, Mr.
DUNCAN, Mrs. SPARTZ, Mr. MEUSER, Mrs. WAGNER, Mr. BUCSHON, Mr.
NUNN of Iowa, Mr. BACON, Mr. SESSIONS, Mr. LUCAS, Mr. FRY, Mr.
BAIRD, and Ms. JACKSON LEE) submitted the following resolution; which
was referred to the Committee on Ways and Means
RESOLUTION
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.
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•HRES 237 IH
Whereas the stepped-up basis under section 1014 of the In-
ternal Revenue Code of 1986 allows recipients of inher-
ited assets such as land, equipment, or buildings to ad-
just the cost basis of the asset to reflect its fair market
value;
Whereas 98 percent of farms are family owned according to
the Department of Agriculture, and 19 percent of all
businesses are family owned according to the Small Busi-
ness Administration;
Whereas a study conducted by the Economic Research Serv-
ice of the Department of Agriculture determined that 66
percent of all midsized farms would see an increased tax
liability if the stepped-up basis were eliminated;
Whereas the stepped-up basis is a crucial component of many
family farms and small business succession plans; and
Whereas the elimination of the stepped-up basis would threat-
en the ability of farmers, ranchers, agribusinesses, and
small business owners to make generational transfers of
their operations: Now, therefore, be it
Resolved, That the House of Representatives—
1
(1) supports the preservation of the stepped-up
2
basis;
3
(2) opposes any efforts to impose new taxes on
4
family farms or small businesses; and
5
(3) recognizes the importance of generational
6
transfers of farm and family-owned business oper-
7
ations.
8
Æ
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