S. 1927: Helping Ensure Rural Inheritance Transfers Are Generationally Enduring Act
This bill, known as the Helping Ensure Rural Inheritance Transfers Are Generationally Enduring Act (HERITAGE Act), proposes changes to the Internal Revenue Code regarding estate taxes related to farmland. The main objectives of the bill are as follows:
1. Increase in Estate Tax Valuation for Farmland
The bill seeks to amend the current limitation on the aggregate reduction in the fair market value of farmland for estate tax purposes. Specifically, it raises the limit significantly. Under the proposed changes:
- The limit for "qualified real property" used for certain farming purposes will increase from $750,000 to $15,000,000.
- For other types of qualified real property, the limit remains at $750,000.
2. Amendments to Existing Code
3. Effective Date
The changes introduced by this bill will apply to estates of individuals who pass away after the bill is enacted into law. This means that the new limits and rules will not be retroactive to estates settled before the enactment date.
Purpose and Impact
The underlying intention of this legislation is to facilitate the transfer of farmland across generations, aiming to preserve rural farming operations by easing the estate tax burden on heirs. By increasing the tax exemption limit for qualifying farmland, the bill aims to help families maintain ownership of their agricultural properties without the financial challenges imposed by estate taxes.
Relevant Companies
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This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
1 sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Jun. 03, 2025 | Introduced in Senate |
| Jun. 03, 2025 | Read twice and referred to the Committee on Finance. |
Corporate Lobbying
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Potentially Relevant Congressional Stock Trades
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