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House Passes Walker's Legislation to Stop Tax on Churches and Charities in Tax Relief Bill

December 20, 2018
Press Release

WASHINGTON, D.C. –  U.S. Representative Mark Walker (R-N.C.) today released the following statement after text from his legislation, H.R. 6460, the Lessening Impediments From Taxes (LIFT) for Charities Act was added to H.R. 88, the Retirement, Savings, and Other Tax Relief Act and passed by the U.S. House of Representatives in a 220-183 vote.

“Never in our nation’s history have we placed a tax on places of worship, always respecting the sanctity of our religious liberty. In this season of giving, our charities and churches should be encouraged to know that the House is dedicated to stopping new taxes and compliance fees that threaten to impede the life-altering work they perform in each of our communities. I am thankful for the leadership of my friend Chairman Kevin Brady in helping get this important legislation passed.”

SEE RELATED: Walker Introduces LIFT for Charities Act to Maintain Non-Filing Tax Status for Charities and Churches
On November 28th, House Ways and Means Chairman Kevin Brady (R-Texas) added the text of the LIFT for Charities Act as a manager's amendment to H.R. 88, which was adopted by the House Rules Committee and added to the legislation.

The LIFT for Charities Act would eliminate a measure that requires charities, churches, and traditionally tax-exempt organizations to pay federal taxes on provided employee benefits.

Examples of employee benefits that would be subject to taxation if the LIFT for Charities Act is not adopted include parking spots, provided meals, and transportation benefits. These benefits are critical to the mission of the organizations; for example, many Goodwill centers offer transportation for employees.

Another additional impediment to non-profit organizations without the passage of the LIFT for Charities Act is compliance burdens and fees. These organizations traditionally have not been required to file returns with the Internal Revenue Service. Without the passage of this legislation, these organizations will spend millions collectively on IRS compliance, further diminishing the resources they are able to spend on serving communities. 

You can read the full text of the legislation here and read the full manager's amendment to H.R. 88 here. 

The LIFT for Charities Act follows Walker's work introducing the Universal Charitable Giving Act, which establishes an universal charitable deduction for individuals and married couples who do not itemize, in addition to the standard deduction.