Early Friday morning, legislators gave final approval to a state budget that preserves nonprofit sales tax refunds and the charitable deduction on state taxes. Thank you for being part of the united voice for nonprofits from across the state.
The Senate's original budget bill would have limited nonprofit sales tax refunds in ways that would create new taxes on both large and small nonprofits. It also would have created a new cap on itemized deductions that would have effectively eliminated the charitable deduction on state taxes. Taken together, these two provisions would have cost nonprofits hundreds of millions of dollars a year in new taxes and reductions in charitable gifts.
When these threats to nonprofit tax exemption and incentives for charitable giving arose, nonprofits came together and made their voices heard with policymakers, the media, and the public about the harm that these proposals would have for communities across North Carolina. Because of the collective advocacy of many nonprofits, state legislators ultimately rejected both of these harmful proposals.
Thank you for taking a stand against this, and saving charitable giving and tax-exemption for non-profits!