IL HB5401

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

Caps aggregate annual tax credits at $10,000,000 in 2022, $25,000,000 in 2023, and $50,000,000 in 2024 and thereafter, with individual taxpayer credits limited to 5% of total annual credits and credits per foundation limited to 25% of annual total.

Reserves 10% of annual credits for endowment gifts of $30,000 or less, prioritizes applications by receipt date when demand exceeds available credits, and maintains a wait list for subsequent years.

Allows credits to be carried forward for 5 taxable years if credit exceeds current year tax liability, and requires Department of Revenue to submit annual reports on credit authorizations.

Amends the Illinois Income Tax Act to change the effective date for unrelated business taxable income rules for exempt organizations from January 1, 2019 to January 1, 2022, and exempts the endowment credit from sunset provisions.