Authorizes a tax credit for contributions to certain benevolent organizations
Impact
This legislation is designed to enhance support for individuals recovering from substance use disorders, particularly targeting justice-involved individuals, such as those recently released from correctional facilities. It seeks to encourage community-based recovery efforts by providing financial incentives for taxpayers to donate to organizations that offer a range of recovery support services, including housing, employment services, and spiritual counseling. The credits issued under the bill are non-refundable but can be carried forward if not fully utilized within the year of contribution.
Summary
Senate Bill 1202 aims to authorize a tax credit for contributions made to certain qualified benevolent organizations that provide recovery support services to individuals facing substance use disorders. The bill specifies that taxpayers can claim a tax credit equal to fifty percent of their contribution to these organizations, starting from tax years after January 1, 2025. Contributions can include cash, stocks, bonds, and real property, but they must be directed to qualified organizations defined under the bill, which do not exceed specific operational budgets or employee compensation limits.
Contention
While proponents of SB 1202 argue that the bill would facilitate greater availability of recovery resources and support for vulnerable populations, potential points of contention may arise regarding the limitations placed on which organizations qualify for the tax credits. The bill stipulates that eligible organizations must not have an annual budget exceeding five million dollars, raising concerns that it might exclude larger, potentially more capable organizations from participating. Furthermore, the criteria for what constitutes a 'qualified organization' and the potential bureaucratic hurdles could also spur debate among stakeholders.
Final_notes
As with many fiscal policies, the success of SB 1202 will depend on its implementation and the actual uptake of the tax credits. Given that the program will have a sunset provision, which requires reauthorization by the general assembly after six years, ongoing analysis and advocacy will be essential to ensure that the objectives of the bill are met and that funding continues to support critical recovery services.