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Bill creating tax credit for donations to faith-based groups draws ethics, accountability concerns
Summary
Representative Slater's bill would create a franchise and excise tax credit of up to $5,000 for businesses that donate to up to 10 eligible faith-based organizations selected annually by the governor's Office of Faith-Based and Community Initiatives; several members warned of conflicts of interest and lack of oversight.
Representative Slater (speaker S9) presented a proposal to create a franchise and excise tax credit of up to $5,000 for businesses that contribute to eligible charitable organizations selected annually by the governor’s Office of Faith-Based and Community Initiatives. Under the bill, the eligibility list would be limited to 10 organizations chosen through an application process.
Multiple committee members pushed back, asking who vets the organizations, how the 10 would be selected and whether the office administering the list has sufficient transparency and accountability. Representative Mackenzie (S7) warned the application-and-selection process could invite accusations of favoritism, saying, "I mean, honestly, can't you see 5 to 10 years from now this being a scandal..." Chairman Clemens (S5) argued the Office of Faith-Based Community Initiatives lacks the oversight and fiscal transparency typical of Department of Revenue processes and flagged a potential conflict of interest given private donations to that office.
Sponsor said eligibility and administration would rest with the governor's office and the faith-based initiative office; he described the credit as an incentive meant to reward charitable giving but acknowledged the bill as limited to religiously affiliated organizations. The committee voted 4 ayes, 8 nays, and 1 present not voting; the bill will proceed to Finance with a negative recommendation.
