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NY S07880

Bill

Status

Engrossed

6/12/2025

Primary Sponsor

Liz Krueger

Click for details

Origin

Senate

2025-2026 General Assembly

AI Summary

  • Creates the "NY-PROTECT ACT" allowing organizations designated as 501(c)(3) tax-exempt by the IRS as of January 19, 2025 to automatically maintain tax-exempt status for New York state purposes until January 1, 2026 or until the commissioner makes a determination

  • Requires the commissioner to establish within 90 days a procedure for organizations to apply for "state protected not-for-profit organization" status if they believe the IRS illegally or improperly revoked their federal tax-exempt designation

  • Grants automatic state protected status to organizations that provide a court ruling finding the IRS acted or likely acted illegally in revoking their tax-exempt status, regardless of pending IRS appeals

  • Allows state protected not-for-profit organizations to retain all tax exemptions under state and local law and be treated as 501(c)(3) organizations for taxes, fees, contracts, grants, licenses, and government programs

  • Takes effect retroactively to January 19, 2025 and expires on January 20, 2029

Legislative Description

Allows an organization included on the federal list of tax-exempt organizations under section 501(c)(3) of title 26 of the United States code on March first, two thousand twenty-five to automatically maintain their tax-exempt status for New York state purposes; provides for the repeal of such provisions upon the expiration thereof.

Last Action

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

1/7/2026

Committee Referrals

Investigations and Government Operations1/7/2026
Ways and Means6/12/2025
Rules6/12/2025
Investigations and Government Operations5/13/2025

Full Bill Text

No bill text available