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]
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)
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.