New York Governor Andrew Cuomo approved a bill that protects non-profit organizations from a tax increase due to a change under the Tax Cuts and Jobs Act.
Under the federal tax law, the amount paid or incurred by any non-profit employers for commuter benefits such as transit or parking is a taxable income.
The legislation signed by Cuomo will separate the State New York of New York’s tax code from the Tax Cuts and Jobs Act. It ensures non-profit employers can continue to deduct expenses for commuter benefits when computing the state Unrelated Business Income Tax.
A provision of the federal tax law imposes an additional nine percent tax on non-profit organizations. It will also divert millions of dollars annually from the non-profit sector. Without the legislation approved by the governor, New York will automatically comply with the Tax Cuts and Jobs Act.
Cuomo says “New York stands with the non-profit community”
In a statement, Cuomo once again condemned the federal tax law. He said, “The federal tax bill egregiously raises costs on non-profits operating in New York State.”