Tax Policy

Part of LeadingAe's 2020 Policy Priorities

LeadingAge Advocacy Goals

  • Maintain current nonprofit tax status for our members as 501(c)(3) exempt organizations.
  • Enhance the Low Income Housing Tax Credit program to broaden its availability for use in developing affordable housing for seniors.
  • Support charitable deductions through tax deductions.
  • Support the deductibility of medical expenses at 7.5% of adjusted gross income.

The Issue

Federal tax laws have various incentives to support charitable institutions, such as allowing individuals to deduct charitable contributions and a certain amount of medical expenses from their tax returns and encouraging investment in housing through tax credits. Tax-exempt organizations rely on these mechanisms to support their philanthropy outreach and their ability to address low-income housing needs.

Advocacy Action 2020

116th Congress

  • Low Income Housing Tax Credits: We support the Affordable Housing Credit Improvement Act of 2019 (S. 1703; H.R. 3077) which would Increase state LIHTC allocations by 50% and provide a 50% basis boost for LIHTC communities that serve households with extremely low incomes in at least 20% of their apartments. We support the replacement of the current right of first refusal with a purchase option to facilitate the ability of nonprofits to maintain ownership/control of housing credit properties beyond Year 15. We support the establishment of a minimum 4% rate for housing credits used to finance preservation acquisitions and recapitalizations and Housing Bond financed developments.
  • Charitable Contributions: We support the universal deduction for charitable giving (H.R. 1260) to maintain the incentive for charitable giving and provide for an “above-the-line” income tax deduction for charitable contributions, and thus likely would improve the expected decline in charitable giving because of the increase in the amount of the standard deduction.
  • Medical Expense Tax Deduction: We support the Medical Expense Savings Act (S. 110) to permanently lower the medical expense itemized deduction to 7.5% of AGI. The threshold of 10% of AGI negatively impacts seniors.
  • Monitor Activity on the Impact of the 2017 Tax Cuts and Jobs Act (TCJA): Congress continues to determine what is and is not working and what can be done to improve the TCJA, including review of the taxation on parking fringe benefits.

Executive Branch

  • TCJA: We monitor efforts and/or guidance to provide clarity on tax changes as a result of TCJA.

Actions You Can Take Now

  • Visit the Advocacy Action Center to let your representative and senators know your views on the tax issues.
  • Host a Coffee Chat with Congress in your community to help your members of Congress understand how your organization gives back to the broader community and fulfills its responsibilities as a tax-exempt entity.
  • Mobilize with the Advocacy Champions toolkit and let your representatives and senators know your views on provider taxes.

Additional Resources