This bill amends the Income Tax Act of 1967 by adding a new section, Sec. 261, which introduces a tax credit for contributions made to endowment funds of community foundations. Starting from tax years beginning on or after January 1, 2026, taxpayers can claim a credit equal to 50% of their contributions, 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 liability cannot be refunded, and the Department of Treasury is required to report the total amount of credits claimed annually to relevant legislative committees. The bill also defines "community foundation" and sets a requirement for certification, allowing organizations with at least $1,000,000 in assets to qualify.

Statutes affected:
Substitute (S-1): 206.1, 206.847
Senate Introduced Bill: 206.1, 206.847
As Passed by the Senate: 206.1, 206.847