Montana Tax Credit

Origninally enacted in 1997, the Montana Income Tax Credit for Endowed Philanthropy encourages charitable giving to qualified endowments by offering incentives to Montana taxpayers. The tax incentive is an income tax credit rather than a charitable gift deduction for gifts to a Montana non-profit endowment fund.

An endowment is a fund in which the principal of the fund is not wholly expendable. Only a percentage of interest and appreciation earned in an endowment fund is used.

Montana law allows you to pay less on Montana state income taxes when you give a qualifying planned gift to a Montana charitable endowment fund.

  • The maximum credit is $10,000 per year.
  • Gifts made this year will allow you a 2009 IRS deduction and a credit on your 2009 Montana tax return.
  • Montana Tax Credit Form: MT QEC -09.

    • Individuals receive a 40% tax credit on planned gifts. Credit against state income tax liability in the amount of 40% of the present value of any planned gift to a permanent endowment of a Montana charity up to a maximum amount of $10,000 per year per taxpayer.

    The types of gifts that qualify for this credit are:

  • Charitable Gift Annuity
  • Deferred Charitable Gift Annuity
  • Paid-up Life Insurance Policy
  • Pooled Income Fund Trust
  • Charitable Life Estate Policy
  • Charitable Remainder Unitrust
  • Charitable Annuity Trust
  • Charitable Lead Unitrust
  • Charitable Lead Annuity Trust
    •

    To see descriptions of these types of gifts go to our planned giving page, or click here.

    Corporations receieve a 20% tax credit on outright gifts. Credit against state income tax liability in the amount of 20% of the present value of any outright gift by a business entity to a permanent endowment of a Montana non-profit up to a maximum of $10,000 per year per taxpayer.

    (If you are a C. corporation, an S. corporation, partnership, or limited liability company you are entitled to the Montana Tax Credit.)