Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.24 - Endow Iowa Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2003, a taxpayer who makes an endowment gift to an endow Iowa qualified
				  community foundation may qualify for an endow Iowa tax credit, subject to the
				  availability of the credit. For tax years beginning on or after January 1,
				  2003, but before January 1, 2010, the credit is equal to 20 percent of a
				  taxpayer's endowment gift to an endow Iowa qualified community foundation
				  approved by the Iowa department of economic development. For tax years
				  beginning on or after January 1, 2010, the credit is equal to 25 percent of a
				  taxpayer's endowment gift to an endow Iowa qualified community foundation
				  approved by the Iowa department of economic development. For tax years
				  beginning on or after January 1, 2010, a taxpayer cannot claim a deduction for
				  charitable contributions under Section 170 of the Internal Revenue Code for the
				  amount of the contribution for which the tax credit is claimed for Iowa tax
				  purposes. The administrative rules for the endow Iowa tax credit for the Iowa
				  department of economic development may be found under 261-Chapter 47.
The total amount of endow Iowa tax credits available is $2
				  million in the aggregate for the 2003 and 2004 calendar years. The total amount
				  of endow Iowa tax credits is $2 million annually for the 2005-2007 calendar
				  years, and $200,000 of these tax credits on an annual basis is reserved for
				  endowment gifts of $30,000 or less. The maximum amount of tax credit granted to
				  a single taxpayer shall not exceed $100,000 for the 2003-2007 calendar years.
				  The total amount of endow Iowa tax credits annually for the 2008 and 2009
				  calendar years is $2 million plus a percentage of the tax imposed on the
				  adjusted gross receipts from gambling games in accordance with Iowa Code
				  section 99F.11(3). The
				  total amount of endow Iowa tax credits annually for 2010 is $2.7 million plus a
				  percentage of the tax imposed on the adjusted gross receipts from gambling
				  games in accordance with Iowa Code section
				  99F.11(3). The
				  total amount of endow Iowa tax credits annually for 2011 is $3.5 million plus a
				  percentage of the tax imposed on the adjusted gross receipts from gambling
				  games in accordance with Iowa Code section
				  99F.11(3). The
				  maximum amount of tax credit granted to a single taxpayer shall not exceed 5
				  percent of the total endow Iowa tax credit amount authorized for 2008 and
				  subsequent years. For the 2012 calendar year and subsequent calendar years, the
				  total amount of endow Iowa tax credits is $6 million; the maximum amount of tax
				  credit authorized to a single taxpayer is $300,000 ($6 million multiplied by 5
				  percent). The endow Iowa tax credit cannot be transferred to any other
				  taxpayer.
Any credit in excess of the tax liability for the tax year
				  may be credited to the tax liability for the following five years or until
				  used, whichever is the earlier.
If a taxpayer is a partnership, limited liability company, S
				  corporation, or an estate or trust electing to have the income taxed directly
				  to the individual, an individual may claim the credit. The amount claimed by an
				  individual must be based on the individual's pro rata share of the individual's
				  earnings of the partnership, limited liability company, S corporation, or
				  estate or trust.
This rule is intended to implement Iowa Code section
				  15E.305 as amended by 2013 Iowa
				  Acts, House File 620, and section
				  422.11H.