The Endow Iowa Tax Credit program was established in Iowa in 2003 to promote charitable giving to endowed funds that provide permanent support for charitable causes in Iowa, while providing a tax benefit to donors. This popular program is announcing some changes to help right-size the demand for these tax credits with the amount that is available each year.

About Endow Iowa

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 gifts of grain, gifts of stock, and cash gifts.

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.

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. As of March 30, 2022, all 2023 Endow Iowa Tax Credits have been allocated. Current applications roll over with the purpose of claiming the 2024 credit allocation. However, as outlined below in the changes to Endow Iowa in 2023, this wait list process will be discontinued on July 1, 2023.

Click here for more general information about Endow Iowa.

Changes to Endow Iowa in 2023

Demand for Endow Iowa Tax Credits has long outpaced availability—all 2022 credits were allocated by September of 2021. And all 2023 credits were allocated by March of 2022. Currently, donors are added to a waitlist for future credits.

The legislature is expected to consider updates to keep this program working for Iowans. Some key changes will be made in 2023:

  • Beginning January 1, 2023, the maximum credit per taxpayer is $100,000 (or $200,000 per couple). This change will apply to tax credit applications received on or after January 1, 2023. This is a reduction from the current limit of $300,000 per taxpayer, (or $600,000 per couple).
  • The waitlist process will be discontinued on July 1, 2023, until the wait list is cleared. At this time, only applications received on or before June 30, 2023 will be added to the wait list.
  • Beginning July 1, 2023, applications must be submitted within twelve months of the date of the gift.

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

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.

Download the Endow Iowa Tax Credit Application (PDF).* 

*Please note that this application must be printed, signed, and returned to the Community Foundation.