New Jersey to Vote on Contribution Deduction
The New Jersey Senate will vote this Monday, March 25 on legislation (S-2179) that would allow New Jersey taxpayers to deduct charitable contributions from their state income taxes made to a “qualified New Jersey-based charitable organization” equal to the amount that is allowable as a charitable deduction under federal income taxes.
This would be great news for nonprofit organizations as it was believed that the not-for-profit community would feel a big impact in terms of future funding as a result of the tax law changes. These changes on the individual level include limiting state and local tax deductions and nearly doubling the standard deduction and the estate and gift tax exemptions, which could leave not-for-profits witnessing cutbacks in donations.
Through this new legislation, a taxpayer would not need to itemize on their federal return in order to claim the state deduction and would provide needed relief to nonprofits by allowing New Jersey taxpayers to deduct contributions made to New Jersey-based charitable organizations.
For more information and/or questions with regards to this proposed legislation, or changes impacting the nonprofit community overall, feel free to reach out to Sax’s Not-for-Profit Practice.