The Endow Iowa tax credit program – a program that allows taxpayers to receive an Iowa state income tax credit equal to 25 percent of the value of a gift to an endowed charitable held at a qualified community foundation – has inspired gifts to endowed funds held at community foundations across the state since 2003. The program is administered by the Iowa Economic Development Authority (IEDA).
Over the last several years, the demand for tax credits outpaced the amount available. In response, the following changes have occurred:
- Since January 1, 2023, the maximum credit per taxpayer is $100,000 (or $200,000 per couple). This is a reduction from the previous limit of $300,000 per taxpayer (or $600,000 per couple).
- In May 2023, a legislative bill, HF 710, was signed into law by Governor Reynolds providing a one-time allocation of $7 million to the Endow Iowa tax credit program to clear the wait list. Donors previously on wait lists for 2023 and 2024 will now receive 2023 tax credits.
- As of July 1, 2023, IEDA will no longer maintain a wait list for future tax year credits. Applications will not be accepted once the credits allocated for that year have been exhausted.
- Beginning January 2024, tax credits will be distributed on a first come, first served basis. Donors are encouraged to give early each tax year going forward.
If you have questions about how these changes may impact your charitable giving, please contact Christi Smeed, Development Services Manager, at 319.774.2377 or email@example.com.
For more information and updates, visit iowaeda.com/endow-iowa/.