HB 1589 Summary

• Creates the Endow Indiana Income Tax Credit program administered by the Indiana Economic Development Corporation (IEDC) effective January 1, 2016, to encourage charitable giving to Indiana community foundations.

• IEDC identifies a lead philanthropic entity (nonprofit with 501(c)(3) status, statewide organization with 40+ members) that awards grants up to $25,000 to qualified community foundations and community affiliate organizations.

• Taxpayers making irrevocable endowment gifts to qualified community foundations receive a tax credit equal to 25% of the gift amount, subject to IEDC approval and a maximum of $6,000,000 in total credits per state fiscal year.

• Individual taxpayer credits capped at 5% of aggregate approved credits; 10% of credits reserved for endowment gifts of $30,000 or less; unused credits may be carried forward for five consecutive taxable years.

• Lead philanthropic entities limited to 5% of grants for administrative costs; grants awarded based on demonstrated need, future philanthropic potential, funding match proportion, and geographic diversity.