Value US Savings Bonds at death of the owner

Does the beneficiary get a stepped up cost basis at the death of the US Savings Bond owner?

No.

There is no step-up in basis regarding Series EE U.S. Savings Bonds and all accrued interest income, since the date of purchase, must be accounted for when the bonds are eventually redeemed.

However, if the executor elects to report all accrued interest income on the decedent’s final income tax return, then the bond’ s cost basis is increased to the extent of the accrued income reported.

What value should the executor of the estate use to value US Savings Bonds for estate tax purposes?

The date of death redemption value is the value to be used on the decedent’s estate tax return.