A New Tax Break on the Horizon for Nonprofits

An amendment to the 2024 Finance Bill—which would reduce income taxes for volunteers at nonprofit organizations—was adopted by members of the National Assembly on Wednesday, October 11, 2023. 
 

People who are members of an association may soon see their taxes decrease. At least, that is what an amendment to the 2024 budget bill proposes. Put forward by Les Républicains (LR) before the Finance Committee on Wednesday, October 11, 2023, at the National Assembly, the amendment was adopted by lawmakers, according to Capital. 
 

The purpose of this amendment is to “create an income tax deduction for volunteers who contribute to a nonprofit organization.” The proposed tax deduction would be “calculated based on the hourly minimum wage” and could not exceed 1,000 euros per year. 
 

Before the committee, the proposal was not well received by Representative Jean-René Cazeneuve (Renaissance), the general budget rapporteur. In his view, it is “something that is undesirable. A tax credit for volunteers is an oxymoron! Where will we stop if we do this?” he said. This opinion, however, was not enough to convince the members of Congress, who adopted the amendment nonetheless. 
 

But that does not necessarily mean the measure will be implemented, since the bill still needs to be voted on in a public session of the National Assembly. And according to *Capital*, if the government decides, as it did last year, to invoke Article 49-3 to force the passage of the budget bill this fall, the amendment could be permanently set aside.