Local Government Charitable Contributions

On December 22, 2017, President Donald J. Trump signed into law the Tax Cuts and Jobs Act of 2017, enacting sweeping changes to the federal tax system for both businesses and individuals. This new federal law will have a disproportionate impact on the tax system and economy of the State of New York. Absent changes to New York’s tax code, the law’s limitations on the deductibility of state and local taxes will cost New York’s taxpayers an additional $14.3 billion this year and risk undermining the progressivity of New York’s tax system, the investments and services that the State provides for its residents, and the competitiveness of New York’s economy over the long term.

The Governor and the Legislature enacted a series of bipartisan reforms to the New York State tax code designed to protect New York residents from the adverse impacts of the federal law. Among these reforms, the new legislation authorizes local governments and school districts to establish charitable gift reserve funds and to offer real property tax credits to incentivize contributions.

The State has made available the following information to assist local governments and school districts interested in participating in the local charitable contributions program:

• Guidance issued by the Department of Taxation and Finance and the Department of State for local governments and school districts interested in establishing and administering charitable funds.
• Additional information on drafting local laws and resolutions.
• A presentation summarizing the DTF and DOS guidance.
• Frequently Asked Questions for local governments, school districts, and taxpayers interested in participating in the program.

The Department of Taxation and Finance has made the following two forms available for use by school districts and local governments:

Acknowledgement of Charitable Contribution

Claim for Property Tax Credit

Individuals interested in making contributions to a charitable gift reserve fund established by their school district, county, city, town, and/or village should contact their local officials for information on whether charitable funds have been established in their localities and how to participate.

It is important to note that this program is different from a similar program enacted by the Governor and the Legislature allowing charitable donations to the State. These donations to the State and any related state income tax credit associated with them are separate and distinct from the optional local government/school district charitable contribution fund and property tax credit program outlined in this guidance. Further information on the State program will be forthcoming.

Local government or school district officials with questions can email [email protected].