The proposed bill amends the Income Tax Act of 1967 by adding a new section, Sec. 261, which allows taxpayers to claim a credit against their income tax for contributions made to the endowment funds of community foundations. For individual taxpayers, the credit is set at 50% of the contribution amount, with a maximum limit of $100 for single filers and $200 for joint filers. For resident estates or trusts, the credit is capped at 10% of the tax liability before any credits 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 included, 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:
House Introduced Bill: 206.1, 206.847