Feenstra Leads Legislation to Permanently Repeal Death Tax on Family Farms and Small Businesses

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) led more than 170 of his colleagues in introducing the Death Tax Repeal Act. This legislation – which enjoys support from more than 230 organizations – would permanently repeal the death tax, which imposes an unfair and costly tax on the transfer of property, land, and other assets from a deceased family member to heirs of family farms and small businesses. 

About 95 percent of small businesses, farms, and ranches in our country are owned by individuals and families, and our legislation would enable these multigenerational businesses to continue to support their families without having to pay a devastating tax on the death of a family member.

U.S. Senate Majority Leader John Thune (R-SD) has introduced companion legislation in the U.S. Senate.

“The death tax is an egregious double tax that unfairly targets American family farms and small businesses and directly threatens long-held farming traditions in rural Iowa and across the country. It is ridiculous that the federal government sends grieving families a massive tax bill when a loved one passes away,” said Rep. Feenstra. “I introduced the Death Tax Repeal Act to put an end to this double taxation, help our farmers and small business owners pass their businesses onto the next generation, and ensure that we can keep our family traditions alive across America. By permanently repealing the death tax, my bill will offer financial relief when it’s most needed and ensure that our families, farmers, and small businesses can keep more of their hard-earned money — just as it should be.”

“Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota,” said Senate Majority Leader John Thune. “Losing even one of them to the death tax is one too many. It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability.” 

“The last thing American families need is the IRS knocking on their door to collect a Death Tax as they grieve the loss of a loved one. However, this is the reality for too many family-owned farms and small businesses, putting generations of hard work in jeopardy. The Trump tax cuts lessened this burden by doubling the Death Tax exemption, but there is more work to be done. I want to thank Congressman Feenstra, vice chair of the Rural America Tax Team, for championing family-owned businesses and rural America by introducing this bill,” said Rep. Jason Smith, Chairman of the U.S. House Ways and Means Committee. “As a fourth-generation farm owner, who manages the same land my grandparents and great-grandparents did, I understand this fear plaguing family-owned businesses across the country. If the Trump tax cuts expire, 2 million family farms will see their Death Tax exemption slashed in half. Congress needs to take immediate action to permanently extend these tax cuts so America’s family farmers do not have to spend their time dialing up estate planners to help navigate the uncertainty. President Trump has ushered in a new golden age in American history, and that starts with helping the men and women who feed and fuel our country.”

“Iowa restaurants and small businesses get better over time, as family-ownership means even more to the next generation and the communities they serve. But if a restaurant operator sees a massive, one-time tax bill, the restaurant may have to take on new debt, consider closing a location, or not be able to reinvest into its people and business. We thank Congressman Feenstra for his efforts to permanently repeal the ‘death tax’ and ask Congress to make this into law,” said Ross Groeneweg, Orange City, Pizza Ranch.

“Farmers and ranchers face unpredictable challenges from changing weather to fluctuating markets. The tax code shouldn’t add to the uncertainty,” said Zippy Duvall, President of the American Farm Bureau Federation. “We appreciate Congressmen Randy Feenstra and Sanford Bishop for their work on the Death Tax Repeal Act, which will help ensure families can afford to pass their farms to the next generation.”

“Nearly 200 small business associations from nearly every industry of the economy support Congressman Feenstra (R-IA) and Bishop’s (D-GA) Death Tax Repeal Act. These members deserve credit for bringing a diverse coalition together around this commonsense legislation. Repealing the death tax will ensure that hard-working families can pass their businesses on to the next generation, preserving jobs, strengthening local economies, and protecting the American dream,” said Palmer Schoening, Chairman of the Family Business Coalition.

“Family-owned manufacturers are critical to the manufacturing supply chain and key to our global competitiveness. The death tax hinders the next generation of manufacturing leaders from investing in their operations, workforce, and infrastructure—damaging the legacy their loved ones left behind. Manufacturers support the Death Tax Repeal Act, which would protect family-owned manufacturers across the country, and we commend Rep. Feenstra for introducing this important legislation. Congress must act this year to protect manufacturers of all sizes—including small, family-owned business—from devastating tax increases,” saidChris Netram, Managing Vice President of Policy at the National Association of Manufacturers.

“The Death Tax isn’t pro-growth – it’s a death warrant for family businesses. It’s the top threat to the future of family farms and ranches, and U.S. cattle producers need relief from this insidious tax. Family-owned farms and ranches operate on limited cash flow, with most of their value tied up in land. As farmland and pastureland values rise, more producers will be hit with this punitive tax, forcing them to sell assets or take on debt, sometimes paying the Death Tax multiple times. In a recent NCBA tax survey, 33% of respondents had paid the tax, and 35% of them had paid it more than once. This is not a tax on the rich, it is a boot on the neck of family businesses. NCBA thanks Senate Majority Leader Thune and Representatives Feenstra and Bishop for leading the charge to repeal the Death Tax once and for all,” said Buck Wehrbein, President of the National Cattlemen’s Beef Association.

“Eliminating the estate tax ensures that agricultural retailers can preserve generational family ownership, reinvest in their communities, and continue to support the farmers who depend on them without the financial strain of estate liquidation or costly tax burdens. The Agricultural Retailers Association applauds Rep. Feenstra for introducing this legislation and urge other members to support it,” said Richard Gupton, Senior Vice President of Policy and Counsel at the Agricultural Retailers Association.

“NFIB appreciates Congressman Feenstra and Congressman Bishop for introducing common sense legislation for family small businesses. Taxing small business owners at death is wrong. The death tax discourages savings and investments, reduces wages and job creation, and is a leading cause of dissolution for thousands of family-run businesses. This bill will help keep small family businesses in the family and prevent them from being acquired by larger competitors,” said Kelsey Snyder, Principal of Federal Government Relations at the National Federation of Independent Business.

Quotes of support from the Family Business Coalition’s Advisory Board members can be found HERE.

A letter of support from the Family Business Coalition can be found HERE.

A letter of support from the Family Business Estate Tax Coalition can be found HERE.

Legislative text can be found HERE.

###