Sub. H.B. 408 Summary

• Establishes a nonrefundable income tax credit for taxpayers making authorized donations to permanent endowment funds of accredited eligible community foundations for taxable years 2014-2018.

• Credit equals 50% of donations under $1,000, or 20% of donations $1,000 or more, capped at $10,000 for individual returns and $20,000 for joint returns.

• Requires taxpayers to obtain prior approval from the Department of Taxation before making donations, with a $20 million annual credit limit.

• Directs the Director of Budget and Management to reimburse the Local Government Fund and Public Library Fund in June of each year for revenue lost due to the credit, calculated using percentages based on fiscal year 2013 baseline amounts.

• Requires the Tax Commissioner to provide annual reports through 2019 on the number and amount of authorized donations and credits granted to the Governor and legislative leadership.