A win for small family businesses and working farms
House Bill 2157 which would have reinstated the estate tax failed in House Finance committee this week. The bill would have gone into effect on those estates for persons dying on and after July 1, 2021. While the bill provides that no estate tax shall be imposed on a gross estate if the majority of the assets of the estate are an interest in a closely held business or a working farm, there were several questions on whether the exemption truly would exempt small businesses and working farm.
NFIB along with several agricultural organizations spoke in opposition to the legislation noting that many small business owners must employ expensive estate planning to ensure their business can be passed to another family member without being hit with the tax.
The patron of the bill, the Chairwoman of the Finance Committee, has pledged to continue to work on this legislation over the next year. NFIB will continue to oppose and ensure our members are updated on efforts to reinstate the estate tax.