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FAQ - Endow Iowa

Endow Iowa Tax Credit Program

Frequently Asked Questions

 

January 7, 2011

 

1)    How does the Endow Iowa Tax Credit Program work?

 

The purpose of the Endow Iowa Tax Credit program is to encourage the creation and growth of Community Foundations in the state, and to encourage philanthropy on the part of individuals and institutions.  The program provides state income tax credits to individuals, businesses, or financial institutions that donate money to Endow Iowa Qualified Community Foundations.  The tax credit is for 25% of the amount of the donation, up to a maximum amount of $100,000 credit (for a $400,000 or higher donation.)

 

2)    How much is available through this Tax Credit Program?

 

The most recent legislation relating to Endow Iowa Tax Credits provides $2.7 million in tax credits each year, plus an amount to be determined each year pursuant to Code 99F.11(3)(e)(3), estimated at $1,000,000 per year.  This will enable the awarding of tax credits for approximately $14.8 million in donations for each of those years.

 

3)    How does one apply for tax credits?

 

Work with your Community Foundation to complete the paperwork on this.  The process is very simple.  After making a gift to a Qualifying Community Foundation, you fill out a simple form (available from the Foundation) and provide it to the Foundation.  They, in turn, fill out a similar form, and mail both forms to the Department of Economic Development.  The Department will then notify the donor of the tax credit award, and send a copy of that letter to the Community Foundation. 

 

The actual tax credit benefit is realized when the donor submits their state income tax form, and claims the credit on their tax form.  The letter from the Department of Economic Development can be used by the taxpayer as back-up documentation for their eligibility for the credit. 

 

4)    Additional Information

 

The Department of Economic Development has prepared Administrative Rules for the FAQ - Endow Iowa.  The Rules are available through the Department contact below, or through the State of Iowa Administrative Rules Coordinator, or the Iowa Administrative Code Web site at http://www2.legis.state.ia.us/IAC.html.  The citation for the Tax Credit Rules is 261 Iowa Department of Economic Development, Chapter 47, Endow Iowa Tax Credits.

 

 

 

 

 

The contact at the Department of Economic Development for information on this program is:                              

 

Julie Lunn

Project Manager

Division of Community Development

Iowa Department of Economic Development

200 East Grand Ave., Des Moines, Iowa 50309

Tel: 515.725-3082   Fax 515.725-3010

endowiowa@iowalifechanging.com

 

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Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: 1.515.348.6200
email: Email Us

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