Endow Iowa Tax Credit Program
Iowa taxpayers should be aware of the Endow Iowa tax credit program, which offers donors a 25% Iowa income tax credit incentive when they make a gift to an eligible endowment fund at the Quad Cities Community Foundation.
This powerful opportunity for Iowa taxpayers is designed to help donors maximize their tax benefits while leaving a lasting legacy for this region. Gifts made through this program will have immediate personal tax benefits and will help to secure sustainable funding for Iowa nonprofits and causes.
It’s important to act early. Endowment tax credits are claimed fast, so the earlier in the year a gift is made, the more likely a tax credit will be available. Community Foundation staff are ready and able to help guide donors through the entire process.
Here are the simple steps to take advantage of this incentive:
Make a qualified donation to an endowment fund that benefits Iowa residents.
Complete and sign the tax credit application, returning to the Community Foundation for submission to the State of Iowa.
Watch for your Tax Credit Certificate from the Iowa Economic Development Authority, which will arrive by mail no later than January 31 of the following year. Be sure to use this certificate when filing your state income tax return.
Individuals are limited to $100,000 in tax credits per year for a $400,000 gift, and a couple is limited to $200,000 in tax credits per year for a $800,000 gift (if both are Iowa taxpayers). If you cannot use the entire tax credit in this year, you can carry it over for up to five years. The tax credit is not transferable.
The Endow Iowa Tax Credit Program remains open until all income tax credits have been exhausted in the calendar (credit) year. Once the income tax credits have been exhausted for that credit year, the application process will close and reopen once the new year's allocation is released. Applications for donations made within a 12-month period of the open cycle are eligible to apply for an income tax credit.
To learn more about this incentive and all the ways you can give, contact a member of the Community Foundation Development Team at development@QCCommunityFoundation.org or 563-326-2840.