Family Business Legacy Act of 2025

HR 2918, the "Family Business Legacy Act of 2025," would create a new estate tax deduction for bequests to specific nonprofit organizations. It allows estates to deduct the full value of transfers to organizations exempt under IRS sections 501(c)(4), (5), or (6), reducing the taxable value of an estate. This applies to estates of people who die after December 31, 2025, and directly affects individuals leaving assets to qualifying nonprofits like community foundations or social welfare groups. The bill does not change tax rates or directly support family-owned businesses, as the title suggests, but rather modifies how certain charitable bequests are treated for estate tax purposes.