Walker's Legislation to Stop New Tax on Churches and Charities Added to Tax Relief Bill
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 proposed as an amendment to H.R. 88, the Retirement, Savings, and Other Tax Relief Act by House Ways and Means Chairman Kevin Brady (R-Texas):
"I want to thank my friend Kevin Brady on behalf of all of the charities and churches across the country whose work and service would be hindered by new taxes and compliance fees. Our focus in Congress is to deliver policies that foster hope, opportunity and prosperity. We have no better ally in that mission than the nonprofits that serve our communities without reservation, without fame or fortune, but with every bit of their complete devotion.”
SEE RELATED: Walker Introduces LIFT for Charities Act to Maintain Non-Filing Tax Status for Charities and Churches
On Wednesday night, Brady added the text as a manager's amendment to H.R. 88, which was adopted by the House Rules Committee. The rules package will be voted on Thursday evening, and, if passed, will be added to H.R. 88 before the expected final House vote on Friday, November 30th.
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.