Income Tax - Subtraction Modification for Donations to Diaper Banks and Other Charitable Entities - Sunset Repeal
Impact
If enacted, SB1115 would have a substantial impact on Maryland's tax code by extending the provisions that allow taxpayers to claim a subtraction for these charitable contributions, which were set to expire. The bill would thereby support ongoing operations of diaper banks and other related charitable entities, facilitating their essential work in distributing hygiene products to vulnerable populations, particularly low-income families. The extension of this tax benefit aims to enhance financial support for such organizations and promote a culture of giving among Maryland taxpayers.
Summary
Senate Bill 1115 seeks to repeal certain sunset provisions related to an income tax subtraction modification for donations made to diaper banks and other charitable organizations in Maryland. Specifically, the bill focuses on allowing taxpayers to subtract up to $1,000 of qualified donations made during a taxable year when calculating their Maryland adjusted gross income. This measure is intended to encourage charitable giving to diaper banks, which play a critical role in supporting families in need by providing essential hygiene products for infants and children.
Contention
One of the notable points of contention surrounding SB1115 may stem from discussions about the sustainability of tax incentives for charitable donations. Critics could argue about the potential budgetary impact of extending these benefits and whether the state should prioritize tax credits for donations to specific charitable causes. Proponents, on the other hand, would likely emphasize the necessity of supporting community-level initiatives that provide crucial assistance to families facing economic hardships.