What is the Charitable Endowment Tax Credit?

The Charitable Endowment Tax Credit was originally enacted in Montana in 1997 and renewed in 2001, 2007, and 2013. Because of the Credit, more than $130 million has been gifted to Montana endowments.
 

Current Law Summary

The law is set to expire on December 31, 2019. The law provides for:

Planned Gifts - 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. [Applies to individual or business entity taxpayers.]

Outright Gifts - Credit against state income tax liability in the amount of 20% of the present value of any outright gift by a business entity to a permanent endowment of a Montana charity up to a maximum of $10,000 per year per taxpayer. [Applies to corporations, small business corporations, partnership or limited liability company taxpayers.]

The statutes governing the Charitable Endowment Tax Credit are found at 15-30-2327 through 15-30-2329, 15-31-161 and 15-31-162.  The relevant Administrative Rules of Montana are found at 42.4.2701, and 42.4.2703 through 42.4.2708. Links to some of the statutes are provided below.

For more information about the Tax Credit, visit the Montana Department of Revenue web site: