Tax Policy

Part of LeadingAge's 2021 Policy Priorities

LEADINGAGE ADVOCACY GOALS

  • Maintain current nonprofit tax status for our members as 501(c)(3) exempt organizations.
  • Enhance 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.

LeadingAge members are saying:

  • “The low-income housing tax credit has to change. The limits are so severe that housing needs cannot be met.”
  • “Protecting charitable tax deductions is critical for our mission to meet seniors’ needs, especially as we face challenges with government reimbursement rates.”

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 2021

                                                                  117th Congress

In the new Congress, we will support and advocate for tax changes that will positively impact members. Those efforts will include the introduction of bills similar to those introduced in the prior Congress on the following topics:

  • Low Income Housing Tax Credits: We support the efforts that 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 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 efforts to permanently lower the medical expense itemized deduction to 7.5% of AGI. The threshold of 10% of AGI negatively impacts seniors.

ACTIONS YOU CAN TAKE NOW