The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017 – 2018)
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1 An Act establishing a universal charitable credit.

2 Be it enacted by the Senate and House of Representatives in General Court assembled,
3 and by the authority of the same, as follows:

4 SECTION 1. Section 6 of Chapter 62 of the General Laws is hereby amended by inserting after
5 subsection (N) the following new subsection: -

6 (O) Massachusetts Universal Charitable Credit

7 (a) The purpose of the Massachusetts Universal Charitable Credit established in
8 accordance with this section is to permit taxpayers to direct a portion of their state
9 income tax liability to “qualified charitable organizations” designated 501(c)(3) in the
10 Internal Revenue Code resulting in significant financial and civic benefits for our state.

11 (b) A credit shall be allowed by the taxpayer against the tax liability imposed by this
12 chapter, for a taxpayer filing single or married filing jointly for voluntary cash
13 contributions by the taxpayer or on the taxpayer's behalf during the taxable year to
14 qualified charitable organizations not to exceed:

15 (i) Five hundred dollars in any taxable year for a taxpayer who files as: single
16 individual, head of household or married filing separately, or

17 (ii) One thousand dollars in any taxable year for a married couple filing a joint return.

18 (c) The credit allowed by this section is in lieu of a deduction pursuant to section 170 of
19 the internal revenue code and taken for state tax purposes.

20 (d) Taxpayers taking a credit authorized by this section shall provide the names of the
21 qualified charitable organizations and the amount of the contributions to the
22 department of revenue on forms provided by the department.

23 (e) The department of revenue shall compile and make available to the public a list of

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The Commonwealth of Massachusetts
__________
In the One Hundred and Ninetieth General Court
(2017 – 2018)
__________

1 qualified charitable organizations.

2 (f) Taxpayers choosing to make voluntary cash contributions through an umbrella
3 charitable organization that collects donations on behalf of member charities shall
4 designate that the donations be directed only to member charitable organizations that
5 would qualify under this section on a stand-alone basis.

6 (g) The allowable credit shall be applied against the qualified tax liability for the year in
7 which it is claimed, but shall not exceed the total liability of the taxpayer for that year,
8 be carried back or refunded.

9 (h) For the purposes of this section, "qualified charitable organizations" means
10 charitable organizations that are:

11 (i) exempt from federal income taxation under section 501(c)(3) of the internal
12 revenue code,

13 (ii) incorporated in the Commonwealth of Massachusetts,

14 (iii) in good standing with the Massachusetts Department of Revenue, and

15 (iv) not under suspension per section 501(p) of the internal revenue code, or
16 revocation per the Internal Revenue Bulletin at the time of the contribution.

17 (i) This act applies retroactively to taxable years beginning from and after December
18 31, 2016.
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