Reps. Jimmy Panetta (D-CA-20) and Jackie Walorski (R-IN-2) introduced the Preserving Family Farms Act of 2021 to protect family-owned businesses from the federal estate tax, also known as the death tax.
The legislation would expand IRS Code Section 2032A and allow cattle producers to utilize the special use valuation. The bill would increase the maximum exemption under the section from $750,000 to $11 million (indexed for inflation).
National Cattlemen’s Beef Association (NCBA) supports the legislation, calling it a “permanent solution to an issue that has long plagued our nation’s cattle producers.” NCBA President Jerry Bohn commended the bill, stating, “America’s farmers and ranchers deserve certainty in the tax code overall, and they need certainty especially when it comes to the estate tax. Without it, transition planning for the next generation of producers is nearly impossible.”
