Endow Iowa Tax Credit

Endow Iowa Tax Credit

We are committed to helping you maximize the tax benefits from your gift. Because each donor’s giving is unique, the easiest way to learn more about the available tax benefits is to give us a call.

Giving to causes you care about through the Community Foundation is easy and can come with generous tax savings such as capital gains savings on gifts of appreciated assets and gifting directly to charities from Individual Retirement Accounts. Additionally, gifts to endowment funds held only at Community Foundations may be eligible for the 25% Endow Iowa Tax Credit.

The Endow Iowa Tax Credit Program offers contributors who live in Iowa and give through the Community Foundation generous tax incentives to make it easier for you to give more for less.

The program was established to encourage building permanent endowments to benefit communities all across Iowa. Iowa taxpayers may apply for the tax credit if they make a gift to a permanently endowed fund that supports charitable activities in Iowa. Here are some specifics:

  • Tax credits are for 25% of the gifted amount.
  • Individuals are limited to $300,000 in tax credits per year for a $1.2 million gift and a couple is limited to $600,000 in tax credits per year for a $2.4 million gift (if both are Iowa taxpayers).
  • An individual or a business creating individual tax liability (partnership, LLC, S Corp., estate, or trust) is eligible to receive a tax credit as long as they pay taxes in Iowa. A C Corporation may also receive a tax credit under this program.
  • You can claim the tax credit on your Iowa income tax return only.
    If you cannot use the entire credit this year, you can carry it over for up to five years. The tax credit is not transferable.
  • If an Iowa tax credit is received for a gift, no Iowa income tax deduction for the same gift is allowed.

Endow Iowa Tax Credits are claimed fast, and for 2021 and 2022, the tax credits are already taken. Applications submitted after the 2022 credits were fully claimed are placed on a waiting list in the order applications are received to request a 2023 tax credit.

2022-2023 Tax Credit Updates

The Endow Iowa Tax Credit Program will be seeing some changes in 2023. Please see below for more details and let us know if you have any questions about these changes. We are proud to be able to continue to connect donors with this tax benefit.

    1. Beginning January 1, 2023, the maximum credit per taxpayer is $100,000 or $200,000 per couple. This is a reduction from the $300,000 previously available.
    2. The waitlist process will no longer apply in 2023 – only applications received on or before June 30, 2023 will be added to the waitlist.
    3. Beginning July 1, 2023, applications must be submitted within 12 months of the date of the gift,

If you have any questions about these updates, please reach out to Shelly Maharry at Shelly@cfjc.org or (319) 337-0483.