Allows a tax credit for general volunteer services

2 Co-sponsors

• Ruben Diaz
• John L. Sampson

BILL NUMBER:S1840

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

Purpose

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.