Sims measure to help nonprofit and charitable organizations during disaster emergency clears House

PHILADELPHIA, May 5 – State Rep. Brian Sims, D-Phila., announced that H.B. 2408 passed in a House vote Monday. The bill includes an amendment introduced by Republicans that borrows the language of Sims’ H.B. 2422.

“I am glad that the beneficial language, crafted after discussions with District 182 charitable organizations, is being incorporated into the bill,” Sims said. “I’m also glad that all of my colleagues saw the importance of supporting Pennsylvania’s charitable organizations at this unprecedented time and administratively incorporated this language and unanimously passed it. I look forward to this becoming law.”

Sims’ bill, HB 2422, would have increased the cap on endowment withdrawals for nonprofit and charitable organizations upon the declaration of a disaster emergency by the Governor. During the disaster emergency and for a period of one year afterward, the cap would increase from its current 7% to 10%.

H.B. 2408 would include the increased cap on endowment withdrawals and would exempt cash payments disbursed by the CARES Act from state and local taxation. It was unanimously passed by the state House of Representatives.

It now heads to the state Senate for consideration.