SB3365 Summary: Endow Illinois Tax Credit Act

• Creates an income tax credit for taxpayers who make irrevocable contributions to permanent endowment funds held by qualified community foundations, with the credit equal to 50% of the gift but capped at $50,000 per taxpayer.

• Establishes annual aggregate credit limits of $10,000,000 in 2012, $25,000,000 in 2013, and $50,000,000 in 2014 and thereafter, with no single taxpayer receiving more than 5% of annual credits and no single fund receiving more than 25% of annual credits.

• Restricts business entity eligibility based on gross business receipts thresholds: $10,000,000 for 2012, $25,000,000 for 2013, and $50,000,000 for 2014 and thereafter.

• Requires the Department of Revenue to develop standardized applications, accept applications on an ongoing basis, reserve 10% of annual credits for gifts of $30,000 or less, and prioritize applications by receipt date if demand exceeds available credits.

• Allows unused tax credits to be carried forward for up to 5 taxable years and exempts the credit from sunset provisions; requires annual reporting to the Governor and General Assembly beginning January 31 of each year.