SB0172 - Endow Illinois Tax Credit Summary

• Creates the Endow Illinois Tax Credit Act providing an income tax credit equal to 25% of endowment gifts made to qualified community foundation permanent endowment funds during taxable years 2024-2033.

• Limits aggregate annual credits to $50 million in 2024, adjusted for inflation thereafter, with a per-taxpayer maximum of $100,000 in 2024 and adjusted thereafter; reserves 10% of annual credits for gifts not exceeding $30,000.

• Requires Department of Revenue to issue contribution authorization certificates before gifts are made and community foundations to issue certificates of receipt within 30 days of receiving gifts, with gifts required to be made within 60 days of authorization.

• Adds a conforming modification to the Illinois Income Tax Act requiring taxpayers to add back any federal charitable deduction claimed for an endowment gift for which they receive a credit under this Act.

• Permits credits to be carried forward for up to 5 years but not carried back, with excess credits applied to the earliest year with available tax liability.