By Suzanne Perry Source: The Chronicle of Philanthropy
The $447-billion jobs bill that President Obama announced last night proposes at least two tax breaks that would benefit nonprofit employers. But over all, the plan emphasized the need to help for-profit businesses hire more workers—and it’s not clear nonprofits would benefit from other tax incentives he mentioned.
The president, outlining to Congress a package of spending and tax measures, proposed two provisions to ease payroll taxes, which are paid by nonprofit and for-profit employers alike. One would cut payroll taxes in half for the first $5-million in payroll; the other would temporarily eliminate payroll taxes for salaries of new workers or for raises for current workers.
But Mr. Obama also proposed several tax credits, without giving many details. They would be available for hiring unemployed veterans and workers who have been looking for a job for more than six months. Ms. Aviv worries they could be in the form of income-tax credits, which are not available to tax-exempt nonprofits.