HB1761 Summary: Endow Illinois Tax Credit Act

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

• Sets annual aggregate credit caps at $10,000,000 for 2022, $25,000,000 for 2023, and $50,000,000 for 2024 and thereafter, with individual taxpayer limits of 5% of annual aggregate and per-foundation limits of 25%.

• Reserves 10% of annual credits for endowment gifts of $30,000 or less; credits may be carried forward for 5 years and are exempt from sunset provisions.

• Restricts business entity eligibility based on gross receipts thresholds: $10,000,000 for 2022, $25,000,000 for 2023, and $50,000,000 for 2024 and thereafter.

• Requires the Department to accept applications on an ongoing basis, maintain a waitlist system if applications exceed available credits, and submit annual reports on credit authorizations by January 31 each year.

• Amends the Illinois Income Tax Act to extend provisions on unrelated business taxable income of exempt organizations to apply for taxable years beginning on or after January 1, 2021.