ACTION ALERT
On January 16, the chairs of the House and Senate tax committees announced a bill that includes series of tax breaks for families, businesses, and individuals, but that does not yet include restoration of the non-itemizer (universal) charitable deduction. As we know, donations are down while demand remains high; tax relief is urgently needed to continue the work of charitable organizations. Representatives and Senators need to hear immediately from the charitable nonprofit community.
Call your Representatives and Senators today and tell them:
“We encourage the [Representative/Senator] to insist on restoration of the non-itemizer (universal) deduction as a provision in any tax package under consideration.”
You can also write your Representatives and Senators to deliver the message via email.
Note that Senator Blackburn is a co-sponsor of the Charitable Act. You can find additional resources here.
ADDITIONAL CONTEXT
Tax Committee Passes the Tax Relief for American Families and Workers Act of 2024
The House Ways and Means passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) and an Amendment in the Nature of a Substitute that temporarily extends and increases the Child Tax Credit through 2025 and certain tax breaks for businesses that would cost $77.5 billion over ten years, according to the Joint Committee on Taxation. The benefits would be paid for by stopping fraudulent claims of the Employee Retention Tax Credit (ERTC), suspending claims after Jan. 31, extending the time for the IRS to pursue invalid claims, and establishing penalties. The bill also provides for low-income housing credits and some disaster tax relief.
Universal (Non-Itemizer) Charitable Deduction Not Included: Unfortunately, the bill does not include the bipartisan non-itemizer charitable tax deduction, strongly supported by the charitable community, including the National Council of Nonprofits. The only mention of the provision during markup was by Rep. Danny Davis (D-IL), “This bill will … not restore the above the line charitable deduction to help non-itemizers and the amazing charities that support our communities.”
Prior to the markup, Sen. Lankford (R-OK) shared an updated press release with quotes from charitable nonprofits, including from the National Council of Nonprofits and many of our partners. See the original press release here.