"On Thursday, the IRS proposed new politically-motivated regulations to block reforms that deliver relief to New York taxpayers - continuing the federal government's hostile tax assault on New York. We are confident that our recently enacted opportunities for charitable contributions to New York State and local governments are consistent with federal law and follow well-established precedent, and I have made it very clear that we will use every tool at our disposal, including litigation, to fight back to ensure New Yorkers aren't being used as a piggy bank to pay for tax cuts for big corporations.
"As we take steps to undo this new attack on our state, I want to alert New Yorkers to the August 27 deadline to make donations to the New York State Charitable Gifts Trust Fund before the IRS regulations potentially take effect. While the federal government wages war on New Yorkers, we will continue to stand up for our hardworking families."
The FY 2019 Budget creates a new Charitable Gifts Trust Fund in the joint custody of the New York State Commissioner of Taxation and Finance and the State Comptroller to accept donations for the purposes of improving health care and public education in New York State. Starting in 2018, donating taxpayers may claim a New York State income tax credit equal to 85 percent of the donation amount for the tax year after the donation is made.
Contributors to the Charitable Gifts Trust Fund may choose to direct their donations into one of two accounts. The Health Charitable Account will receive charitable contributions for services relating to primary, preventive, and inpatient health care, dental and vision care, hunger prevention and nutritional assistance, and other services for New York State residents with the overall goal of ensuring that residents have access to quality health care and other related services. The Elementary and Secondary Education Account will receive charitable contributions to support the elementary and secondary education of students enrolled in public school districts in the State.
Instructions for taxpayers interested in making charitable contributions are available here. The proposed IRS regulation specifies that its changes would apply to contributions made after August 27, 2018. Charitable contributions made by mail are deemed to have been paid on the postmark date. As always, taxpayers are advised to consult a qualified tax advisor regarding their personal situation.