Parade of Legislation, 2003-2004

Nonprofit organizations have been inundated in recent years, with federal tax legislation that is directly or indirectly having an impact on their operations. Here is a summary of that legislation enacted during the period 2003-2004.

Jobs and Growth Tax Relief Reconciliation Act of 2003 [Public Law 108-27]

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  • Maximum tax rate of 15 percent on net long-term capital gains

  • Lower tax rates extended to dividends

  • These law changes are leading to changes in charitable remainder trust ordering and distribution rules

  • Acceleration of phase-in of certain marginal tax rate reductions enacted previously

  • This legislation is summarized in the July 2003 issue of Bruce R. Hopkins' Nonprofit Counsel

 

Military Family Tax Relief Act of 2003 [Public Law 108-121]
 

  • Rules created by which the tax-exempt status of organizations that are designated as supporting or engaging in terrorist activity is suspended (IRC § 501(p))

  • This legislation is summarized in the January 2004 issue of Bruce R. Hopkins' Nonprofit Counsel


Pension Funding Equity Act of 2004 (Public Law 108-218)

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  • Revision of rules as to eligibility for tax exemption for small property and casualty insurance companies (IRC § 501(c)(15)).

  • This legislation is summarized in the June 2004 issue of Bruce R. Hopkins’ Nonprofit Counsel.

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