1. Short title This Act may be cited as the Family Business Legacy Act of 2018 . 2. Exclusion of bequests to certain exempt organizations from value of taxable estate (a) In general Part IV of subchapter A of chapter 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 2059. Bequests to certain exempt organizations (a) In general For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate the amount of all bequests, devises, or transfers to or for the use of any organization exempt from tax under section 501(a) and described in paragraph (4), (5), or (6) of section 501(c). (b) Powers of appointment Property includible in the decedent's gross estate under section 2041 (relating to powers of appointment) received by a donee described in this section shall, for purposes of this section, be considered a bequest of such decedent. (c) Death taxes payable out of bequests If the tax imposed by section 2001, or any estate, succession, legacy, or inheritance taxes, are, either by the terms of the will, by the law of the jurisdiction under which the estate is administered, or by the law of the jurisdiction imposing the particular tax, payable in whole or in part out of the bequests, legacies, or devises otherwise deductible under this section, then the amount deductible under this section shall be the amount of such bequests, legacies, or devises reduced by the amount of such taxes. (d) Limitation on deduction The amount of the deduction under this section for any transfer shall not exceed the value of the transferred property required to be included in the gross estate. (e) Disallowance of deductions in certain cases Where an interest in property (other than an interest described in section 170(f)(3)(B)) passes or has passed from the decedent to a person, or for a use, described in subsection (a), and an interest (other than an interest which is extinguished upon the decedent's death) in