An Act To Encourage Charitable Contributions to Nonprofit Organizations
Sec. 1. 36 MRSA §5125, sub-§4, as enacted by PL 2013, c. 368, Pt. TT, §11 and affected by §20, is amended to read:
Sec. 2. Retroactivity. This Act applies retroactively to tax years beginning on or after January 1, 2013.
Under current income tax law, there is a cap of $27,500 on the total itemized deductions, including those for charitable donations, that a taxpayer may claim in order to reduce Maine adjusted gross income.
This bill removes from the cap donations made to a nonprofit organization and applies the change retroactively to tax years beginning on or after January 1, 2013.