Keep "In the Loop" with NYGFOA! 
June 17, 2019
Final Regulations Issued on State/Local
Tax Credits and Charitable Contributions
On June 11, 2019, the U.S. Treasury Department and Internal Revenue Service (IRS) released the final regulations regarding the availability of charitable contribution deductions under section 170 when a taxpayer receives or anticipates receiving a matching state or local tax credit. The 2017 Tax Cuts and Jobs Act (TCJA) limited the itemized deductions for state and local taxes (SALT) to $10,000.

States like New York, where the average amounts claimed by individuals were higher than the cap, enacted legislation that exercised their authority to enable taxpayers to make charitable contributions to an established state fund in order to earn a credit. The goal was to essentially transform a non-deductible payment into a charitable contribution since those were not capped under the new federal tax law.
The final regulations (which are scheduled to take effect August 12, 2019) officially reject such efforts by requiring that taxpayers subtract the value of any state or local tax credit they receive or expect to receive from their federal charitable contribution deduction. However, the final regulations provide a safe harbor for state tax deductions and tax credits that amount to no more than 15 percent of the donation. To read the final regulations, click below:

Legislation Expanding Public Sector Deposit Options Being Considered in State Legislature
As the State Legislature winds down its 2019 Session (scheduled to end Wednesday, June 19th), one of the pieces of legislation receiving active consideration is a bill which would permit credit unions and savings banks to accept public sector deposits (A. 3262-A / S. 6079-A).

The authorization would begin January 1, 2020 and expire December 31, 2025. The maximum amount which could be deposited in a credit union by a public entity would be capped at $500,000 for 2020 and gradually increased each year through 2025 (savings banks would not be subject to this cap).

The bill also contains a requirement that the Superintendent of Financial Services submit to the Governor and State Legislature, by January 1, 2025, a public report with recommendations concerning the impact of allowing credit unions and savings banks to accept public deposits. The report would need to be prepared in consultation with various stakeholders including local governments, banks, credit unions and savings banks.

Although NYGFOA is not taking a position on this legislation, it is following it very closely and will keep you 'in the loop' on developments.

Click on the link below to see the bill text and latest status:

To see what other legislation the Association is following, click on the Legislative Resources link below: