“Tax extenders” legislation includes provisions for exempt organizations

“Tax extenders,” provisions for exempt organizations

The House today passed, 319 to 109, the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act).

Related content

The PATH Act—along with an omnibus spending package (the Omnibus Bill)—is a year-end legislative package that would make permanent some provisions in the Code that recently expired or that are scheduled to expire and would extend other expired provisions through 2016 or 2019. Extensions of provisions that already have expired generally would be retroactive to the beginning of 2015.

Permanent extensions (some modifications)

The PATH Act would make permanent, among many other measures, the following provisions that are of interest to exempt organizations:

  • Tax-free distributions from individual retirement accounts (IRAs) for charitable purposes
  • Enhanced charitable deduction for contributions of food inventory (modified to increase the limit on deductible contributions of food inventory and by providing special rules for valuing food inventory)
  • Modification of tax treatment of certain payments to controlling exempt organizations
  • Special rules for contributions of capital gain real property made for conservation purposes (modified to permit Alaska Native Corporations to deduct certain donations of conservation easements up to 100% of taxable income)
  • Parity for exclusion from income for employer provided mass transit and parking benefits
  • Employer wage credit for activated military reservists (modified to apply to employers of all sizes for tax years beginning after December 31, 2015)

This is not a complete list. Read a more detailed discussion: TaxNewsFlash-Legislative Updates

Congressional process, schedule

Today’s vote in the House is on the first part of congressional action on the year-end tax legislation. The second part (the Omnibus Bill) is scheduled for a vote in the House tomorrow.

The PATH Act and the Omnibus Bill are being considered in the House via a parliamentary procedure that aims to combine the two bills by attaching them both as amendments to H.R. 2029, the “Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2016.” The House voted today to attach the PATH Act to H.R. 2029, and the House is expected to vote tomorrow (December 18) on the question of whether to approve the Omnibus Bill by adding it as a separate amendment to H.R. 2029.  

Assuming that both amendments pass the House, H.R. 2029 (then renamed the ‘‘Consolidated Appropriations Act, 2016’’ and containing both the PATH Act and the Omnibus Bill in one bill) would be sent to the Senate for consideration. Senate action on H.R. 2029 is expected to follow shortly thereafter, perhaps as early as late Friday evening or over the weekend.


For more information, contact the Managing Director-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group:

D. Greg Goller | +1 (703) 286-8391 | greggoller@kpmg.com

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