Governor Andrew Cuomo today signed legislation (S.08831/A.11051) to protect non-profits from a tax hike resulting from the federal tax bill. This legislation decouples the New York State tax code from a change made to the federal Unrelated Business Income Tax by the Federal Tax Cuts and Jobs Act, which considered the amount paid or incurred by any non-profit employer for commuter benefits, such as transit or parking, as taxable income.
"The federal tax bill egregiously raises costs on non-profits operating in New York State," Governor Cuomo said. "By decoupling from this area of the federal tax code, we are taking action to protect these critical organizations from the federal assault and sending a strong message that New York stands with the non-profit community."
Without legislation, New York would automatically follow the new federal statute, which would impose an additional 9% tax on not-for-profits and divert millions of dollars from the nonprofit sector each year. Today's legislation will ensure that non-profit employers can continue to subtract expenses for commuter benefits when calculating the state Unrelated Business Income Tax.
Senator Michael H. Ranzenhofer said, "The change made to the federal unrelated business income tax seriously hurts non-profits in New York and put many of them at risk. By signing this legislation, Governor Cuomo is standing up for these groups. I commend the Governor for taking this important action."
Source: The Office of Governor Andrew M. Cuomo
"The federal tax bill egregiously raises costs on non-profits operating in New York State," Governor Cuomo said. "By decoupling from this area of the federal tax code, we are taking action to protect these critical organizations from the federal assault and sending a strong message that New York stands with the non-profit community."
Without legislation, New York would automatically follow the new federal statute, which would impose an additional 9% tax on not-for-profits and divert millions of dollars from the nonprofit sector each year. Today's legislation will ensure that non-profit employers can continue to subtract expenses for commuter benefits when calculating the state Unrelated Business Income Tax.
Senator Michael H. Ranzenhofer said, "The change made to the federal unrelated business income tax seriously hurts non-profits in New York and put many of them at risk. By signing this legislation, Governor Cuomo is standing up for these groups. I commend the Governor for taking this important action."
Source: The Office of Governor Andrew M. Cuomo
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