Montana Tax Credit for Endowed Philanthropy
The 1997 Montana Legislature enacted a law which provides a tax credit to individual taxpayers who make a planned gift to a qualified Montana charitable endowed fund. The law also allows a tax credit for other gifts to be made by corporations and estates to a qualified Montana endowment. The Montana Tech Foundation maintains a qualified endowment fund. The Montana Special Legislative Session which concluded August 10, 2002, enacted temporary amendments to the charitable endowment tax credit. Through 12/31/2013, the law allows:
Individuals and businesses - Credit against state income tax liability in the amount of 40% of the present value of any "planned gift" to a permanent endowment of a Montana charity up to a maximum amount of $10,000 per year per taxpayer.
Businesses - Credit against state income tax liability in the amount of 20% of the present value of any outright gift to a permanent endowment of a Montana charity up to a maximum of $10,000 per year per taxpayer.
On December 29, 2005, the Montana Department of Revenue ruled that a gift to a charity’s building campaign can qualify for the Qualified Montana Endowment Tax Credit. The text of that ruling can be found here.
This Montana income tax credit is in addition to the federal income tax deduction you may be entitled to take.
For the latest rules and how this tax credit may impact your particular situation, always consult with a tax or financial advisor, and/or the Montana Department of Revenue.
For individuals and businesses, a tax credit has been made available for gifts defined as planned gifts. This means an irrevocable contribution to a permanent endowment fund (the Montana Tech Foundation), when the contributor uses one of the following gift techniques which are authorized under the IRS Code:
Charitable Remainder Trusts
Charitable Lead Trusts
Charitable Gift Annuities
Deferred Charitable Gift Annuity
Charitable Life Estate Agreements
Pooled Income Funds
Paid-up Life Insurance Policies
The staff of the Montana Tech Foundation would be happy to discuss this outstanding tax credit opportunity with you. For more information, please call today at 1-800-984-4683 or (406) 496-4278. More information about The Montana Income Tax Credit for Endowed Philanthropy is available from the Governor's Task Force on Endowed Philanthropy website.
The information presented above is not intended as legal or tax advice. For legal and tax advice, please consult an attorney or an accountant.
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