Less than one third of the available Endow Iowa tax credits remain for 2022, as reported by the Iowa Economic Development Authority this week. As of August 9, 2021, approximately $1.6 million in credits remain of the $6 million allocated statewide. The Community Foundations of Southwest Iowa encourages individuals and businesses to take advantage of this special incentive to support local charitable causes.
Due to the popularity of the program, all Endow Iowa tax credits for calendar year 2021 were expended as of December 2020 and eligible gifts are now being placed on a waiting list for 2022. Credits are given on a first-come, first-served basis. This means not only is it important to make your gift, but to fill out and return your Endow Iowa application as quickly as possible. Current applications roll over with the purpose of claiming the 2022 credit allocation.
When you make a gift to an endowed fund benefiting Iowa charitable causes through the Community Foundations of Southwest Iowa, it may cost you far less thanks to Iowa’s generous Endow Iowa 25% state tax credit. Various gift types qualify for the tax credit, including charitable IRA rollovers, gifts of grain, gifts of stock, and cash gifts. View the details of the program and its impact across the state in the 2021 Endow Iowa Fact Sheet.
The U.S. Treasury Department published the regulation, “Contributions in Exchange for State or Local Tax Credits,” on June 13, 2019, which impacts the federal deductibility of gifts made on or after August 28, 2018 claiming the 25% Endow Iowa Tax Credit. Click here for more information on this regulation, known as the SALT Cap.
The Community Foundations of Southwest Iowa recommends donors consult with their tax advisor to review their individual circumstances in order to maximize tax incentive opportunities.
For more information on the Endow Iowa program and the availability of tax credits, please contact Stacey Goodman at 800.794.3458.
*Please note that this application must be printed, signed, and returned to the Community Foundation.