Senate Bill 2160 Summary

• Creates a 40 percent tax credit for financial institutions making charitable gifts to qualified endowments, with a maximum annual credit of $10,000 per financial institution.

• Allows individuals a 40 percent tax credit for charitable gifts to qualified endowments, with minimum gift amounts of $5,000 for single gifts and a maximum annual credit of $10,000 for individuals or $20,000 for married couples filing jointly.

• Establishes definitions for "qualified endowment" (permanent, irrevocable funds held by North Dakota nonprofit organizations or banks/trusts on their behalf) and "planned gift" (irrevocable charitable contributions using nine specified Internal Revenue Code techniques).

• Applies the same 40 percent credit structure to corporations (maximum $10,000 annually), estates and trusts (maximum $10,000 annually), and partnerships/S corporations/LLCs (maximum $10,000 annually), with credits passed through to respective beneficiaries and members.

• Prohibits the same charitable gift from being used as the basis for multiple tax credits and permits unused credits to carry forward for up to three taxable years; effective for taxable years beginning after December 31, 2010.