One of the most dramatic impacts of Task Force efforts has been the level of expansion in permanent endowments that has resulted from thousands of Montanans utilizing the Montana Tax Credit for Charitable Gifts to Qualified Endowments. Originally enacted in 1997, it is estimated that more than $100 million will have been gifted to Montana endowments by the end of 2007.

Briefly, the current Montana Qualified Endowment Credit law (effective from July 1, 2003 through December 31, 2013) provides for:

Planned Gifts - Credit against state income tax liability in the amount of 40% of the present value of any planned gift to a permanent endowment of a Montana charity up to a maximum amount of $10,000 per year per taxpayer. [Applies to individual or business entity taxpayers.]

Outright Gifts - Credit against state income tax liability in the amount of 20% of the present value of any outright gift by a business entity to a permanent endowment of a Montana charity up to a maximum of $10,000 per year per taxpayer. [Applies to corporations, small business corporations, partnership or limited liability company taxpayers.]

For detailed information about legislation governing Montana's Endowment Tax Credit visit the following sections of Montana Code Annotated:

• Definition of a Planned Gift 15-30-165(1) MCA
• Definition of a Qualified Endowment 15-30-165(2) MCA
• Defining the Tax Credit for Planned Gifts 15-30-166 MCA
• Defining the Tax Credit for Outright Gifts by Business Entities
  15-31-161 MCA and 15-31-162 MCA
• Charitable Gift Annuity Exemption Act 33-20-701 thru 705 MCA

SB 150: Governor Signs Charitable Tax Credit Renewal
After near unanimous passage in the 2007 Legislature, Governor Schweitzer signed into law an extension until 2013 of Montana's Charitable Endowment Tax Credit (SB 150). The new law maintains current credit levels for both individuals and corporations. In addition, the bill revises the definition of "permanent, irrevocable fund" to exclude contributions that are "expended directly for constructing, renovating, or purchasing operational asset, such as buildings or equipment." A separate bill was introduced this session, HB 746, that would have provided a tax credit for those contributing to captial construction. That bill was tabled in the Senate Taxation Committee.

Thank you to Senator Kim Gillan (D-Billings) as primary sponsor of the bill, and to Rep. Bob Lake (R-Hamilton) for carrying the bill in the House.