Community Foundation Tax Credit By Jeff Jacobs
What are they? 102 Illinois Counties Where does the funding come from? Stakeholders ◦ Individual Community Foundations ◦ Alliance of Illinois Community Foundations ◦ Illinois Communities ◦ Illinois Taxpayers
Michigan Community Foundation Tax Credit Endow Iowa Tax Credit
Current Legislation - HB 4714 House Action: ◦ Originally Filed by Rep. Robert W. Pritchard (R) ◦ Chief Co-Sponsors: Rep. Robert F. Flider (D), Cynthia Soto (D), Mike Boland (D), Linda Chapa La Via (D) ◦ Co-Sponsors: Rep. Kay Hatcher (R), Naomi D. Jakobsson (D), William Davis (D), Michael K. Smith (D), Elizabeth Hernandez (D) Possible Senate Action: Former Sponsor: Sen. A.J. Wilhelmi (D) Sen. Mike Jacobs (D)
New Language – Community Foundation Tax Credit ◦ 50% of Donation = Credit ◦ Caps for Individuals, Estates, Companies Married donors, filing jointly, can receive a 50% tax credit of up to $500 on a gift of $1,000 to a permanent endowment fund. A single person can receive a $250 tax credit on a gift of $500 – non- refundable. Illinois businesses have the potential to receive up to a $5,000 tax credit on a gift of $10,000 – non-refundable. ◦ Total amount of credits = $7,000,000 Tied to 1% “Education Surtax” proposed by Gov. Quinn It is paid for!
Married Filing Jointly - Itemize (28%)Corporate Taxpayers (35%) Federal Tax Savings $ 280 Federal Tax Savings $ 3,500 State Tax Savings $ 500 State Tax Savings $ 5,000 Total Tax Savings $ 780 Total Tax Savings $ 8,500 Amount of Gift $ 1,000 Amount of Gift $ 10,000 (-) Total Tax Savings $ 780 (-) Total Tax Savings $ 8,500 Donor's Actual Cost $ 220 Donor's Actual Cost $ 1,500
Website Mission Statement ◦ Community Foundations support local programs that educate, train and improve the lives of Illinois citizens. As a result, local communities can use this resource to grow because their citizens will become more marketable, confident and success oriented. Issue Paper Issue Paper Fact Sheet Fact Sheet Letter to Legislators Letter to Legislators