Partner Ralph E. DeJong spoke at an American Health Lawyers Association webinar on 'Tax Reform's Impact on Tax-Exempt Healthcare Organizations: No Rest for the Weary.'
Relatively unscathed in 1986, the last time US federal tax rules were overhauled comprehensively, tax-exempt organizations have been in the cross-hairs of Congress's tax-writing committees for many years. As with any legislative vehicle, there are opportunities for winners and losers and, make no mistaken, tax-exempt health care organizations are losers under the Act. Eliminating the estate tax's reach and doubling the standard deduction will challenge revenue-strapped organizations seeking charitable contributions. The Act toughens the Unrelated Business Income Tax—or UBIT—rules, introduces a new executive compensation excise tax, and eliminates tax-exempt advance refunding bonds and tax credit bonds issued after December 31, 2017.
During this session the panelists discussed the silver lining (if any) in tax reform and how health care organizations could prepare for the future.