The Virginia Beach Heroes Act ensures that donations for families of fallen Virginia Beach officers qualify as charitable contributions and that aid payments to these families by charities are considered tax-exempt.
Jennifer Kiggans
Representative
VA-2
The Virginia Beach Heroes Act ensures that donations made to support the families of law enforcement officers killed in Virginia Beach on February 22, 2025, qualify as charitable contributions, even if they are specifically for those families. It also clarifies that payments made by charitable organizations to the families of these officers will be considered as fulfilling the organization's exempt purpose, as long as the payments are made in good faith using a reasonable and consistent formula.
Virginia Beach Heroes Act Ensures Tax Breaks for Donations to Fallen Officers' Families from 2025 Tragedy
This bill, the 'Virginia Beach Heroes Act,' tackles the tax rules around supporting the families of law enforcement officers killed in Virginia Beach on February 22, 2025. Its main goal is to make sure that both individual donations and aid distributed by charities for these specific families are handled smoothly under tax law.
Making Sure Your Donation Counts: Tax Deductions Secured
Normally, donating to a specific person or family, even through a charity, might not qualify for a tax deduction. Section 2 of this act specifically addresses this for the Virginia Beach tragedy. It amends the Internal Revenue Code (Section 170) to clarify that cash contributions made specifically for the relief of these families do qualify as tax-deductible charitable contributions.
Real-world impact: If you donate money intended for these families, this bill ensures you can claim that deduction on your tax return, removing potential ambiguity.
Helping Charities Deliver Aid: Protecting Non-Profit Status
The act also smooths the way for established charities helping these families. Payments made by a charitable organization directly to the spouse or dependents of the officers killed on February 22, 2025, will be considered part of the charity's exempt purpose between that date and February 23, 2028. This means these payments won't be seen as improperly benefiting private individuals, which could otherwise risk the charity's tax-exempt status.
There's a key condition: the charity must make these payments in good faith using a reasonable and consistently applied formula. This ensures fairness in how aid is distributed.
Real-world impact: A non-profit organization set up or designated to support these families can distribute funds directly to them without worrying about violating IRS rules regarding private benefit, as long as they act fairly and transparently within the specified timeframe.