S. 1927 — HERITAGE Act

This section increases the maximum aggregate reduction in fair market value for qualified real property eligible for special use valuation under IRC §2032A from $750,000 to $15 million when used for a qualified use described in §2032A(b)(2)(A) (i.e., farming by the decedent or family member), while maintaining the $750,000 limit for uses described in §2032A(b)(2)(B) (i.e., certain other trade or business uses). (As background, special use valuation permits farmland and certain closely held business real property to be valued for federal estate tax purposes at current use value rather than fair market value, subject to this cap on the reduction and potential recapture tax if the use changes.) It makes conforming changes to apply inflation adjustments to each dollar amount separately and applies to decedents dying after enactment.