The Endow Iowa Tax Credit is equal to 20% of a taxpayers endowment gift to a qualified community foundation. The gift must be for a permanent endowment fund established to benefit a charitable cause in Iowa. The Iowa Department of Economic Development is responsible for registering and authorizing the tax credits, and controlling the distribution of these tax credits.

The total amount of tax credits authorized cannot exceed $2 million, and the maximum amount of tax credits granted to a single taxpayer cannot exceed $100,000. Any tax credit in excess of the taxpayers tax liability can be carried forward for the following five years or until depleted, whichever occurs first. The endow Iowa tax credit cannot be authorized after December 31, 2005. The tax credit is not transferable.

The tax credit is available for individual income, corporation income, franchise tax, insurance premiums tax and moneys and credits tax. An individual can claim the credit for a gift made by a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed to the individual, based on the pro rata share of earnings from the pass-through entity.

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