Bill > A08583

This bill, known as the "NY-PROTECT ACT", provides protection for tax-exempt organizations (501(c)(3) nonprofits) that may have had their federal tax-exempt status improperly revoked by the Internal Revenue Service (IRS). Specifically, any organization that was designated as tax-exempt on January 19, 2025, will automatically maintain its tax-exempt status for New York state purposes until January 1, 2026. The bill establishes a procedure for organizations to apply for a "state protected not-for-profit organization" designation if they believe the IRS improperly revoked their tax-exempt status. Organizations can obtain this designation by providing evidence of an improper revocation, such as a court ruling, and will then be treated as a tax-exempt organization for all state and local purposes, including taxes, contracts, grants, and other benefits. The certification will be valid for up to one year, and the state tax commissioner can revoke it if the organization provides false information or no longer meets the requirements. The bill is temporary, taking effect immediately and expiring on January 20, 2029, with the primary protections beginning on January 19, 2025.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A8583