The bill amends the Income Tax Act of 1967 by adding a new section, Sec. 261, which allows taxpayers to claim a tax credit for contributions made to the endowment funds of community foundations. For tax years beginning on or after January 1, the credit is set at 50% of the contribution amount, with specific maximum limits: $100 for individual taxpayers, $200 for joint returns, and for resident estates or trusts, the lesser of 10% of their tax liability or $5,000. To qualify for the credit, taxpayers must obtain a gift acknowledgment from the community foundation confirming the contribution.

Additionally, the bill stipulates that any credit exceeding the taxpayer's tax liability cannot be refunded, and the Department of Treasury is required to report the total amount of credits claimed annually. The definition of a "community foundation" is also provided, specifying that organizations must apply for certification by May 15 of the tax year and have at least $1,000,000 in assets to qualify. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847