Authorizes a tax credit for providing housing to victims of domestic violence
Impact
The implementation of SB 795 will modify existing tax regulations to encourage donations to shelters focusing on domestic violence. By allowing taxpayers to claim these credits, the bill not only promotes charitable giving but also aims to reduce the financial burdens faced by these organizations. Cumulatively, the bill intends to uplift shelters that often struggle with funding while providing additional resources to meet the needs of their clients.
Summary
Senate Bill 795 aims to provide financial incentives through tax credits for individuals and businesses that contribute to shelters for victims of domestic violence and rape crisis centers. The bill establishes a framework whereby taxpayers can receive a credit of fifty percent of their contributions for certain fiscal years, which increases to seventy percent for fiscal years beginning after June 30, 2022. This initiative seeks to bolster funding for organizations that support vulnerable victims, thus addressing significant social issues related to domestic violence and sexual assault within the state.
Contention
One notable point of potential contention is the cumulative limit on tax credits, which was initially set at two million dollars for a specified period but is proposed to be removed for fiscal years starting after June 30, 2022. This change could elicit differing opinions regarding the sustainability of public funds involved in the tax credit system. Critics may argue that removing the cap could lead to an excessive financial burden on the state's budget, whereas proponents would emphasize the importance of ensuring that shelters are adequately funded to handle the increasing number of domestic violence cases.