The Charitable Endowment Tax Credit was originally enacted in Montana in 1997 and renewed in 2001, 2007, 2013, and 2019. Because of the Credit, more than $130 million has been gifted to Montana endowments.
Current Law Summary
The law is set to expire on December 31, 2025. The law 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 an 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.]
The statutes governing the Charitable Endowment Tax Credit are found at 15-30-2327 through 15-30-2329, 15-31-161, and 15-31-162. The relevant Administrative Rules of Montana are found at 42.4.2701 and 42.4.2703 through 42.4.2708. Links to some of the statutes are provided below
- Definition of a Planned Gift 15-30-2327(1)(b) MCA
- Definition of a Qualified Endowment 15-30-2327(1)(c) MCA; and Permanent Irrevocable Fund 15-30-2327(1)(a)
- Providing for the Tax Credit for Planned Gifts 15-30-2328 MCA
- Providing for the Tax Credit for Outright Gifts by Business Entities 15-31-161 MCA and 15-31-162 MCA
- Describing impermissible provisions in planned gifts 15-30-2327(2) and (3) MCA
- Charitable Gift Annuity Exemption Act 33-20-701 thru 705 MCA
For more information about the Tax Credit, visit the Montana Department of Revenue website.