The bill amends the Income Tax Act of 1967 by adding a new section that allows taxpayers to claim a credit against their income tax for contributions made to the endowment funds of community foundations. Specifically, taxpayers can receive a credit equal to 50% of their contributions, with a maximum credit of $100 for individual taxpayers or $200 for joint returns. For resident estates or trusts, the maximum credit is limited to 10% of their tax liability or $5,000, whichever is less. 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. It also requires the Department of Treasury to report the total amount of credits claimed under this section to specific legislative committees annually. The definition of a "community foundation" is provided, indicating that organizations must apply for certification 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:
House Introduced Bill: 206.1, 206.847