The Charitable Endowment Tax Credit was originally enacted in Montana in 1997 and renewed in 2001, 2007, 2013, and 2019. Because of the Credit, more than $130 million has been gifted to Montana endowments.
The Montana Endowment Tax Credit was extended through 2025 during the 2019 Montana Legislative Session. Senator Mark Blasdel carried the bill which received strong bipartisan support as it moved through process. In the end the bill passed unanimously out of the Senate and was passed by the House 94-3.
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.
MCA 15-31-161 - Business credit for contribution by corporations to qualified endowment -- recapture of credit -- deduction included as income.
MCA 15-30-2327 - Qualified endowments credit -- definitions -- rules.
MCA 15-30-2328 - Individual credit for contributions to qualified endowment -- recapture of credit -- deduction included as income.
For more information about the Tax Credit, visit the Montana Department of Revenue web site.