Nonprofit organization government grants

From the 2024 DOR Tax Exemption Study

82.04.4297 - Nonprofit organization government grants Description Nonprofit organizations or local government entities may take a B&O tax deduction for amounts received by health or social welfare organizations as compensation from federal, state, or local governments for the support of health or social welfare programs. Examples of programs covered by the deduction include: - Health care. - Family and drug counseling. - Services for the sick, elderly, and handicapped. - Day care. - Vocational training and employment services. - Legal services for the indigent. - Services for low-income homeowners or renters. Medicare and Medicaid receipts of nonprofit and public hospitals are also deductible. Purpose To provide government with greater purchasing power when government provides financial support for the provision of health or social welfare services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $561.900 $589.700 $622.100 $656.600 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $540.