Rep. Mann Reintroduces Legislation to Preserve Stepped-Up Basis
WASHINGTON, D.C. – Ahead of National Agriculture Day, U.S. Representatives Tracey Mann (KS-01), Jim Costa (CA-21), Adrian Smith (NE-03), Jimmy Panetta (CA-19), Bob Latta (OH-05), and Ranking Member of the House Agriculture Committee Angie Craig (MN-02) reintroduced legislation recognizing the importance of stepped-up basis. Stepped-up basis is a longstanding provision within the tax code that protects Americans from being forced to pay capital gains taxes on inherited assets such as land, equipment, or buildings, allowing recipients of such inherited assets to adjust their cost basis to reflect their fair market value. According to a study by the U.S. Department of Agriculture’s Economic Research Service, 66% of all midsized farms would see an increased tax liability if stepped-up basis were eliminated.
“More than 98% of all American farms and 90% of American businesses are family-owned and operated," said Rep. Mann. “Eliminating stepped-up basis and imposing this farm killer tax will destroy the livelihoods of producers and small business owners in Kansas and across the country. Our farmers, ranchers, agricultural producers, and small business owners are the backbone of America, and Congress must support their efforts, not crush them with devastating capital gains taxes. I will always stand with small businesses and family farms and look forward to working with President Trump and his administration to protect their livelihoods."
“Minnesota’s family farmers work hard to be able to pass their operations onto their kids and grandkids, and we should be making that easier to do – not harder,” said Rep. Craig. “I'm proud to be working across the aisle to preserve the stepped-up basis for the next generation of family farmers and producers so they can continue feeding and fueling our communities for years to come.”
“Over 90% of farms nationwide are family-owned, and in the San Joaquin Valley, these family farms are the heart of our economy,” said Rep. Costa. “Preserving the stepped-up basis will help ensure that family farms and small businesses can continue to thrive and be passed down to future generations.”
“The last thing rural Americans need to be worrying about is the elimination of the estate tax’s stepped-up basis provision,” said Rep. Latta. “The stepped-up basis provision is crucial to small family-owned farms across Ohio as it allows the generational transfer of their operations. I am proud to lead this effort in the House with Reps. Mann and Smith because it puts American farmers, ranchers, and small businesses first so that they can ensure their operations can thrive for decades to come.”
The stepped-up basis resolution commits the House of Representatives to support the preservation of stepped-up basis, oppose any efforts to impose new taxes on family farms or small businesses, and to recognize the importance of generational transfers of family-owned farms and small businesses.
Joining Reps. Mann, Costa, Smith, Latta, and Ranking Member Craig in introducing the resolution are Reps. Brad Finstad (MN-01), Randy Feenstra (IA-04), Dan Meuser (PA-09), Russ Fulcher (ID-01), Ann Wagner (MO-02), Claudia Tenney (NY-24), Dan Newhouse (WA-04), Chuck Fleischmann (TN-03), Mark Alford (MO-04), John Moolenaar (MI-02), Sam Graves (MO-06), Frank Lucas (OK-03), Keith Self (TX-03), Michael Guest (MS-03), Derek Schmidt (KS-02), Mary Miller (IL-15), and John Rose (TN-06).
“Missouri’s family farms and small businesses are the backbone of the Fourth District’s economy and way of life,” said Rep. Alford. “The stepped-up basis ensures that hardworking American families can pass down their legacy without being burdened by crushing tax liabilities. I am proud to support this resolution to protect farmers, ranchers, and small business owners from unfair tax hikes that threaten their livelihoods. Preserving the stepped-up basis is not just about economics—it’s about protecting the American Dream for future generations.”
“Family farms and small businesses are the backbone of our economy,” said Rep. Moore. “Harmful regulations force these folks to pay outrageous capital gains taxes on inherited assets such as land, equipment, or buildings. I am proud to cosponsor House Resolution 206, which makes it clear that I am against any effort to impose new taxes on family-owned farms or small businesses."
“As a fourth generation farmer, I know firsthand the challenges our farmers and producers face when trying to pass down their operations to the next generation,” said Rep. Finstad. “Protecting stepped-up basis is critical for those who are trying to keep their family businesses alive. I’m proud to join my colleagues in reintroducing this resolution, which will protect family farmers and business owners from detrimental capital gains taxes.”
Rep. Mann fought against the Biden Administration’s attacks on stepped-up basis since he was elected to Congress. In September 2021, Rep. Mann introduced legislation to preserve stepped-up basis. In March 2022, Rep. Mann led more than 70 Members in introducing a bipartisan resolution to protect the long-standing provision in the tax code. Rep. Mann also led an April 2022 letter to the Biden Administration expressing concerns with their budget proposal that threatened stepped-up basis.
Rep. Mann introduced a resolution in March 2023 to protect stepped-up basis in response to the Biden Administration’s budget proposal that suggested eliminating the tax provision. The Congressman heavily criticized President Biden’s fourth budget in a row that eliminated the provision. In September 2024, Rep. Mann called out the Biden Administration’s efforts to increase the tax burden for families that inherit farmland or small businesses.
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For more information on Rep. Mann visit www.mann.house.gov