SB3473 Summary

• Creates the Endow Illinois Tax Credit Act authorizing income tax credits equal to 50% of endowment gifts made to permanent endowment funds held by qualified community foundations.

• Establishes annual credit authorization caps of $10,000,000 in 2021, $25,000,000 in 2022, and $50,000,000 in 2023 and thereafter, with individual taxpayer limits capped at 5% of annual total and per-foundation limits at 25%.

• Reserves 10% of annual available credits for endowment gifts of $30,000 or less, with applications prioritized by receipt date and a wait list system for excess demand.

• Allows tax credits to be carried forward for 5 years and requires the Department of Revenue to submit annual reports detailing authorized credits and maintain ongoing application processing with public updates by June 1 and December 1.

• Amends the Illinois Income Tax Act to change the effective date of unrelated business taxable income provisions for exempt organizations from January 1, 2019 to January 1, 2020.