Allows a New York state credit against income tax of one hundred fifty dollars for a minimum of one hundred fifty hours of volunteer services to federal, state or municipal organizations or to a certified not-for-profit corporation or organization, in any taxable year; provides that such tax credit not be allowed for volunteer services which are normally and customarily performed by a paid employee; requires the tax commissioner to provide a method of documenting the hours served by a volunteer; requires the tax commissioner to issue certificates of eligibility to not-for-profit corporations or organizations established for charitable purposes.
TITLE OF BILL: An act to amend the tax law, in relation to authorizing a tax credit for general volunteer services performed for a governmental entity or charitable not-for-profit corporations or organizations
SUMMARY OF PROVISIONS: This bill adds section six hundred and twenty-B to the Tax Law to allow a New York State tax credit of $150 for at least 150 hours of volunteer services, in any taxable year, for such services to federal, state or municipal organizations; provides that the tax credit received not exceed the amount of tax owed and that no credit be granted for volunteer services which are normally and customarily performed by a paid employee; requires the tax commissioner to provide a method of documenting the hours served by a volunteer and to issue certificates of eligibility to not-for-profit corporations or organizations established for charitable purposes.
JUSTIFICATION: Presently, when an individual makes a charitable monetary contribution, he/she is allowed a tax credit for that contribution. A person who donates considerable and consistent time and effort for a particular cause deserves similar recompense. In addition, more people would be motivated to volunteer because of the possibility of a tax credit, and present volunteers would have incentive to remain. Providing a tax credit for these volunteer workers would constitute well deserved recognition of the significant rendered volunteers.
FISCAL IMPLICATIONS: Estimated at less than two million dollars.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to all taxable years commencing after December thirty-first of the year preceding such effective date.
STATE OF NEW YORK ________________________________________________________________________ 1840 2011-2012 Regular Sessions IN SENATE January 13, 2011 ___________Introduced by Sens. OPPENHEIMER, DIAZ, SAMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Investi- gations and Government Operations AN ACT to amend the tax law, in relation to authorizing a tax credit for general volunteer services performed for a governmental entity or charitable not-for-profit corporations or organizations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 620-B to read as follows: S 620-B. CREDIT FOR GENERAL VOLUNTEER SERVICES PERFORMED FOR CHARITA- BLE NOT-FOR-PROFIT CORPORATIONS OR ORGANIZATIONS. (A) GENERAL. A RESI- DENT SHALL BE ALLOWED A CREDIT AGAINST THE TAX OTHERWISE DUE UNDER THIS ARTICLE IN THE AMOUNT OF ONE HUNDRED FIFTY DOLLARS, PROVIDED SUCH RESI- DENT PERFORMED GENERAL VOLUNTEER SERVICES FOR AT LEAST ONE HUNDRED FIFTY HOURS IN ANY TAXABLE YEAR FOR FEDERAL, STATE OR MUNICIPAL AGENCIES OR CHARITABLE NOT-FOR-PROFIT CORPORATIONS OR ORGANIZATIONS. (B) LIMITATION. NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION, SUCH CREDIT SHALL NOT EXCEED THE AMOUNT OF TAX OWED BY SUCH RESIDENT FOR ANY TAXABLE YEAR; NOR SHALL ANY CREDIT BE GRANTED FOR VOLUNTEER SERVICES PROVIDED BY A RESIDENT WHICH ARE NORMALLY AND CUSTOM- ARILY PERFORMED BY A PAID EMPLOYEE OF THE FEDERAL, STATE OR MUNICIPAL AGENCY OR THE CHARITABLE NOT-FOR-PROFIT CORPORATION OR ORGANIZATION FOR WHICH THE RESIDENT IS PROVIDING SUCH SERVICES. (C) REGULATIONS OF THE COMMISSIONER. THE COMMISSIONER SHALL PROVIDE BY REGULATION A METHOD OF DOCUMENTING THE ACTUAL PERFORMANCE BY A RESIDENT OF THE HOURS OF GENERAL VOLUNTEER SERVICE REQUIRED TO ESTABLISH ELIGI- BILITY FOR THE TAX CREDIT AUTHORIZED HEREIN. THE COMMISSIONER SHALL ALSO ISSUE CERTIFICATES OF ELIGIBILITY TO NOT-FOR-PROFIT CORPORATIONS OR ORGANIZATIONS WHICH ARE ORGANIZED FOR CHARITABLE PURPOSES IF THE COMMIS- SIONER IS SATISFIED, UPON APPLICATION OF SUCH CORPORATION OR ORGANIZA-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06317-01-1 S. 1840 2
TION, THAT SUCH CORPORATION OR ORGANIZATION IS REGULARLY AND EFFECTIVELY PERFORMING CHARITABLE WORKS CONSISTENT WITH THE PURPOSES FOR WHICH THE SAME WERE INCORPORATED OR ORGANIZED. ONLY GENERAL VOLUNTEER SERVICES PERFORMED FOR A FEDERAL, STATE OR MUNICIPAL AGENCY OR A CERTIFIED NOT-FOR-PROFIT CORPORATION OR ORGANIZATION SHALL QUALIFY FOR THE CREDIT AUTHORIZED HEREIN. S 2. This act shall take effect immediately and shall apply to all taxable years commencing after December thirty-first of the year preced- ing such effective date.