There are some important changes affecting the Endow Iowa Tax Credit program in 2023. As a nationally accredited community foundation, we have been proud to offer this program, which gives donors who give to a permanently endowed fund at a qualified community foundation an opportunity to receive a 25% state of Iowa tax credit for their gift. This program is producing substantial and sustainable support to nonprofits in Iowa.
Due to the growing popularity of the Endow Iowa 25% State Tax Credit, the Iowa Economic Development Association (IEDA) is making changes to the program for 2023. This includes a new maximum tax credit and a pause on the credit application process in order to clear the current wait list.
Here’s what you need to know as you consider a gift to an endowed fund:
- IEDA will not accept Endow Iowa applications after June 30, 2023. Donors who apply for the tax credit prior to that date will continue to be placed on the waitlist. We will file the paperwork with the state for you.
- The program will not reopen until all applicants on the wait list have been awarded their tax credit.
- The maximum tax credit has been lowered to $100,000 per taxpayer (or $200,000 per couple).
If you have considered taking advantage of the Endow Iowa 25% State Tax Credit, we encourage you to make your gift and submit your application prior to June 30, 2023 to be placed on the waitlist.
As new information is available regarding the program, we will provide updates to you. If you have questions or would like to learn more about this program, please contact us any time. Thank you for investing in the city we love!
Advocate for Endow Iowa
House File 673 passed the House Appropriations Committee unanimously and a new bill number – HF710 – has been assigned. The bill is now eligible for House floor debate. This bill includes positive increases and benefits to both Endow Iowa dn the County Endowment Fund program, as well as grantmaking through Qualified Sponsoring Organizations (QSOs). Additionally, an amendment was added to fix an issue that was caused when last year’s tax bill passed affecting Endow Iowa donors on the waitlist that gave above the new aggregate cap allocation.
Please join us in advocating for this program by sharing your experience with your local legislators. Below is information from the Iowa Council of Foundations to help you share how the Endow Iowa 25% State Tax Credit has benefited your giving and our community. You can find a list of members of the House of Representatives and their contact information here. Please reach out to your Senators as well. You can find a list of Senators and their contact information here.