Maine Charities Fear State Deduction Cap Will Cut Giving

The Maine Association of Nonprofits estimates that charities across the state could lose $20-million to $30-million this year due to a newly implemented limit on tax deductions, Portland TV station WCSH reports.

The change in Maine’s tax code, enacted last year to help close a $37-million budget deficit, caps a taxpayer’s state deductions at $27,500. Brenda Peluso, director of public policy for the nonprofit association, predicted that with the incentive to donate reduced Maine residents will rein in giving by about 5 percent.

Ms. Peluso said charities are working with lawmakers to find a solution that balances tax incentives to give with the state’s budget needs. The legislature’s Joint Standing Committee on Taxation is expected on Wednesday to work on a bill addressing the issue.