HB1241 - Endow Illinois Tax Credit Act

• Creates the Endow Illinois Tax Credit Act providing income tax credits equal to 25% of endowment gifts made to permanent endowment funds held by qualified community foundations for taxable years ending between December 31, 2024 and January 1, 2034.

• Sets aggregate annual credit limits starting at $50 million in 2024, with subsequent years adjusted annually by Consumer Price Index increases; individual taxpayer credits capped at $100,000 in 2024 with annual CPI adjustments, and 10% of annual credits reserved for gifts not exceeding $30,000.

• Limits credits to any single community foundation to 15% of total annual credits; requires Department of Revenue to issue contribution authorization certificates and track available credits on its website with daily updates.

• Requires taxpayers claiming the credit to make endowment gifts to permanent funds that provide charitable grants exclusively for Illinois residents or in-state charities, exist in perpetuity, and maintain annual spending rates not exceeding 7%.

• Requires additions to tax base equal to federal deductions claimed for endowment gifts receiving state credits under the Act, and allows credits to be carried forward 5 years but not carried back.