What's happening
This bill clarifies that tax-exempt organizations in New York cannot support or oppose political candidates, aligning state law with federal 501(c)(3) standards as of 2019.
Why it matters
Aligns state and federal standards. By explicitly matching New York’s rules for tax-exempt organizations with federal 501(c)(3) standards as of 2019, the bill reduces confusion or conflicting guidance for nonprofits operating in the state.
Limits political influence by charities. The amendment makes it clear that organizations benefiting from state-level tax exemption cannot support or oppose candidates for public office, tightening the rules and potentially reducing “gray areas” or loopholes.
Provides legal clarity and compliance guidance. By referencing federal interpretations as of a fixed date, the bill gives nonprofits and regulators a stable benchmark for compliance, helping to avoid future disputes or shifting standards that could arise from later federal changes.
Impacts nonprofit advocacy and operations. Nonprofits that may have previously engaged in limited candidate-related activities under ambiguous state law must now ensure their activities clearly avoid any candidate support or opposition, affecting how they participate in public discourse.
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Who cares
Headline styles
Bar Corporations From Campaigns
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Recommit, enacting clause stricken
- Referred to budget and revenue
Companion bills
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Stop Corporate Campaign Spending
Signed by Governor · Sponsor Liz Krueger
Bar Corporations From Campaigns
Assembly Floor Calendar · Sponsor Amy Paulin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1933
2019-2020 Regular Sessions
IN SENATE
January 17, 2019
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to limitations on political activity
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 4 of subdivision (a) of section 1116 of the tax law, as amended by chapter 270 of the laws of 2001, is amended to read as follows:
(4) Any corporation, association, trust, or community chest, fund, foundation, or limited liability company, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, (except as otherwise provided in subsection (h) of section five hundred one of the United States internal revenue code of nineteen hundred fifty-four, as amended), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. The provisions of this paragraph regarding political campaign activity shall be interpreted in the same manner as section 501(c)(3) of the United States internal revenue code has been interpreted as of the effective date of the chapter of the laws of two thousand nineteen that amended this paragraph;
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02092-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to limitations on political activity
Purpose or general idea of bill
To codify the federal prohibition on not-for-profit corporations partic- ipating or intervening in political campaigns.
Summary of provisions
Section one amends section 1116 of the Tax Law to provide that a corpo- ration of any kind to which this chapter applies shall not participate in, or intervene in, any political campaign on behalf of or in oppo- sition to any candidate for public office. The provisions of this para- graph regarding political campaign activity shall be interpreted in the same manner as section 501(c)(3) of the United States Internal Revenue Code has been interpreted as of the effective date of the chapter of the Laws of 2018 that amended this paragraph.
Section two provides the effective date.
Justification
The Johnson Amendment to 501(c) (3) of the Internal Revenue Service Code provides that a 501(c)(3) organization, which is exempt from taxation, may not "participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office." While this critical protection has been in place since the Internal Revenue Code of 1954 was enacted,there have been efforts by Congress to repeal it.
Repeal of the Johnson Amendment would politicize non-profits, including religious organizations, which would then be able to endorse candidates and make donations to campaigns. The vast majority of religious organ- izations and non-profits oppose the repeal, including more than 100 faith groups and more than 5,700 nonprofits which have signed letters to Congress expressing their opposition(1).
Codifying the Johnson Amendment into New York law will ensure that, should Congress repeal it, not-for-profit corporations in our state would still be prohibited from engaging in political activity.
Prior legislative history
2018 - S.8366-A/A.10354-B ELECTIONS/W & M
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.