SB 2286 Summary

• Amends North Dakota income tax law to allow tax credits for charitable gifts and planned gifts to qualified nonprofit organizations and qualified endowments.

• Individuals receive a 40% tax credit on planned gifts with maximum annual credits of $10,000 (individuals) or $20,000 (married filing jointly); charitable gifts to qualified endowments require minimum $5,000 contribution and provide same 40% credit with same annual maximums.

• Expands definition of "qualified endowment" to include organizations in bordering states that support hospitals, nursing homes, or medical centers located within five miles of a North Dakota city of 5,000+ population with no hospital.

• Corporations, estates, trusts, and pass-through entities are allowed 40% tax credits on charitable gifts to qualified endowments with maximum annual credits of $10,000.

• Unused credit portions may be carried forward up to three taxable years; credited gifts cannot be used as basis for other tax credits; if gift is recovered, previously claimed credit must be repaid as additional tax.

• Effective for taxable years beginning after December 31, 2014.