HB 16-1089 Summary

• Allows individual taxpayers to claim a 25% income tax credit for contributions of money, securities, or property to eligible endowment funds of Colorado charitable organizations, effective for tax years 2016-2018.

• Defines eligible endowment funds as those belonging to federal 501(c)(3) organizations organized and operated in Colorado, managed under the Uniform Prudent Management of Institutional Funds Act, and excludes donor-advised funds and private foundations.

• Requires Colorado charitable organizations holding the contributions to issue credit certificates to taxpayers, who must submit them with their tax returns to claim the credit.

• Caps the maximum credit at $25,000 per individual per tax year, with unused credits carried forward for up to five subsequent tax years but not refundable.

• Prohibits claiming this credit if the taxpayer claims any other state income tax credit for the same charitable contribution.