Endow Iowa Tax Credit waitlist to be discontinued

On July 1, 2023, the Iowa Economic Development Authority (IEDA) will discontinue wait lists for Endow Iowa Tax Credits. Community foundations will cease accepting applications until the IEDA reopens the application process at a date yet to be determined.

Donors have the unique opportunity to take advantage of the Endow Iowa Tax Credit Program when making a direct gift into an eligible fund with the Community Foundations of Southwest Iowa. This tax credit program allows donors to receive a 25% Iowa tax credit for gifts made to permanent endowment funds that benefit Iowa charitable causes. Learn more.

What’s Next?

Donors who apply for the tax credit prior to June 30, 2023, will continue to be placed on the 2024 wait list. All applications that are currently on wait lists will not be affected by this change.

Due to the lack of clarity on when the application process will reopen following the wait list discontinuation on July 1, 2023, we encourage you to make gifts to Endow Iowa eligible funds before June 15, 2023. This will allow our foundation staff the proper time to process the gift and Endow Iowa application before the system closes on June 30, 2023.

Iowa’s community foundations will continue to monitor legislative deliberations and keep you informed.

Additional Considerations for Donors.

This is a reminder that you should only fill out the tax credit application if you are going to have a State of Iowa income tax liability. Effective January 1, 2023, a new law exempts Iowa taxation on all “retirement income” for those who are disabled or 55 years of age or older. It also exempts retirement income received by surviving spouses. Retirement income includes, but is not limited to, 401(k), 403(b), and Individual 401(k) Plan distributions. This change may impact your income tax liability and your eligibility to receive an Endow Iowa tax credit.

Please contact your financial planner or tax advisor with additional questions or to discuss how this information impacts you personally.

We’re proud to be able to connect you to this tax benefit while you support the causes you care about. As always, we’re here to answer your charitable giving questions – for more information on the Endow Iowa program and the availability of tax credits, call 800.794.3458.