Up to 300,000 Not-for-Profit Jobs to be Lost from Tax Exemption Change

Nurses in Colorado

Nurses in Colorado (Photo credit: timefornurses)

US Federal proposals to restrict or eliminate the use of tax exempt bonds by nonprofit health, education and other charitable organizations will impact on project costs, delays and curtailments and eliminate tens of thousands of jobs throughout the country.

A study done for the National Association of Health and Educational Facilities Finance Authorities (NAHEFFA) found that if Congress limited the tax exemption to 28% for municipal bonds that finance health, educational and other charitable projects throughout the United States, 105,000 jobs, $5.5 billion of labor income and $8.3 billion in GDP would be lost annually. If Congress eliminated the tax exemption altogether then the loss would be 300,000 jobs, $15.6 billion of labor income and $8.3 billion in GDP. This means that thousands of hospitals, clinics, colleges, job centers and boys and girls clubs throughout the US that depend on tax exempt bonds to access capital will be affected, particularly those in smaller communities, which are the largest employers in the area and engines for economic growth.

Key findings from study include:

  • Nonprofit health and education investment is critical for maintenance of the nation’s welfare, productivity and economic growth. The types of projects funded range from general acute care hospitals, critical access hospitals, children’s hospitals, higher education and private school facilities, libraries, museums, cultural and performing arts centers and senior assisted living.
  • A 28% cap on the interest exemption applicable to bonds used by  nonprofits for  financing would , based on average spending in the past decade, reduce US gross domestic product by $8.3 billion per year, cost the nation 105,000 jobs and $5.5 billion in labor income annually.
  • A complete elimination of 501(c)(3) tax exempt financing would reduce gross domestic product by $8.3 billion and lose 300,000 jobs which would have annually generated $15.6 billion in labor income.

From:  National Association of Health and Educational Facilities Finance Authorities (NAHEFFA)

Follow the Magazine:
(After you have filled in your email address in the column at the right hand side of the screen, a confirmation email will sent to your email address. You will have to confirm it before subscription begins)

Follow us on Twitter:

Like us on Facebook:

**As part of the Magazine’s drive to reward subscribers/followers, we will be providing subscribers/followers special access to exclusive content which will not be otherwise available to normal visitors. Please be sure to subscribe to the Magazine. Many visitors have given us positive comments that they will be bookmarking the site, but as the system is unable to capture a working email address to which the passcodes for exclusive content will be sent, they will miss out on this content. Do note that passcodes are locked to each exclusive content, not a one-for-all access, so do provide a working email address that you check regularly so as not to miss out on them!

2 thoughts on “Up to 300,000 Not-for-Profit Jobs to be Lost from Tax Exemption Change

  1. I consider this is an educational publish and it is really valuable and experienced. for that reason, I would like to thank you for the initiatives you have manufactured in creating this report.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s