The state legislature has re-convened, and we have our first update on what promises to be a busy legislative session.

California's Response to the Federal Tax Law

Concerned that California taxpayers now face a cap in how much of their state and local taxes they can deduct from their federal income taxes, State Senate President Pro Tem Kevin de León (Los Angeles) and Senators Benjamin Allen (Redondo Beach), and Jerry Hill (San Mateo) introduced SB 227, the Protect California Taxpayers Act. This bill would allow a taxpayer to make charitable, tax-deductible monetary contributions to a newly-created State fund, and would establish a procedure to allow the taxpayer to obtain a credit against their state taxes for the amount contributed to that fund. The taxpayer will then be able to deduct the contribution from their federal taxes just as they have historically done with their state tax payments.

As you know, CalNonprofits strongly opposed the federal tax bill, and were are therefore heartened to see California leaders step up with creative solutions to mitigate this harm. SB 227 will ease tax burdens for some California taxpayers while expanding the opportunity for those Californians to itemize their charitable deductions. That's why CalNonprofits supports SB 227, and we look forward to working with the California Legislature as we bring the nonprofit community's perspectives and concerns to the discussion.

Update on Threat to Nonprofit Contracting- AB 1250

In response to strong advocacy by CalNonprofits and others, AB 1250 was held in the Senate Rules Committee at the end of 2017, but it could still move forward this year. CalNonprofits is actively watching for signs that AB 1250 may become active, but because of your relationships with elected officials and decision makers, you may hear developments before us. Please continue to share what you're hearing with us.

Together, we can crowd-source what's going on!

We encourage you to reach out to your state Senator, reminding them of the vital work your nonprofit does for your community, and the importance of county funds in supporting your mission. Whether you set up a special meeting to discuss this, or simply run into them at a community event, remind your State Senator about the danger that AB 1250 poses for nonprofits, and that you are still very concerned. Keep an eye out for action alerts from us, make sure your colleagues also receive our updates (they can subscribe here), and be ready to mobilize again. As the legislative season heats up, we'll be on the lookout for opportunities and potential threats to the nonprofit community. You can always check the CalNonprofits Legislation Tracker for the latest information on the status of these bills.