In 1997, the Montana Legislature enacted a law entitled the Montana Endowment Tax Credit. That legislation allowed Montana individuals, corporations, partnerships and limited liability taxpayers who make a qualifying gift to a permanent endowment to receive a credit against their state income tax.
This legislation was modified and updated in 2001, 2002, and again in the 2003 legislative sessions.
As modified by the 2003 Legislature, the tax credit summarized below.
Donations made between August 28, 2002 and June 30 2003:
Planned Gift: A credit against state tax liability in the amount of 30% of the present value of any planned gift to a permanent endowment of a Montana charity up to a maximum of $6,600 per year per taxpayer.
Outright Gift: A Credit against state law liability in the amount of 13.3% off the present value of any outright gift by a business entity to a permanent endowment of a Montana charity up to a maximum of $6,600 per year per taxpayer.
Donations made between July 1, 2003 and December 31 2007:
Planned Gift: The tax credit is increased to 40% and a maximum of $10,000 per year per taxpayer.
Outright Gift: The tax credit is increased to 20% and a maximum of $10,000 per year per taxpayer.
This legislation provides an excellent opportunity for an individual or business with a Montana income tax liability to make a donation to The Red Lodge Area Community Foundation and receive partial offset to their state income tax liability.
A Gift Cost Illustration for an Endowment Gift
Business Contributions to Charitable Endowments and the MT Tax Credit
Montana Tax Credit Explanation
The Red Lodge Fun Run for Charities is supported by the generosity of the local community and administered by The Red Lodge Area Community Foundation.
