Beginning July 1, $2 million in tax credits will be available. Because these credits have historically been claimed quickly, applicants should be ready to submit their applications when the program opens — ideally on July 1, but no later than July 7.
The Endow Kentucky Tax Credit allows Kentucky income taxpayers (individuals and businesses) to receive a state tax credit of up to 20 percent of a charitable gift, not to exceed $10,000 per taxpayer, to a permanent endowment fund held at a qualified community foundation, county specific component fund or affiliate community foundation. It's a great, tax-efficient way to provide sustained support to your favorite Kentucky non-profit organizations.
Application Process:
Starting July 1st the ENDOW Application must be filed with the Kentucky Department of Revenue to obtain preliminary tax credit approval. This must be filed via fax, email, or hand delivery. Credit Certification cannot be guaranteed for documents sent through the mail.
The Department will review all preliminary applications received and provide notice of the preliminary approval.
Within 30 days of receiving your approval letter, make your contribution to a qualifying endowment foundation fund.
Within 10 days of making your gift, the foundation will send proof of your endowment gift to the Department of Revenue.
Upon confirmation of the gift, the Department of Revenue will then issue a final tax credit confirmation letter to the donor to be used with their respective KY tax return.
Endow Kentucky Tax Credit giving details:
The maximum tax credit (up to $10,000 per taxpayer; $20,000 per married couple filing jointly) may be taken against individual income tax, corporation income tax or limited liability income tax. So a gift of $15,000 would generate a $3,000 tax credit for that individual’s tax return.
Any unused credit is available to be carried forward for up to 5 years. This credit is available to all who pay Kentucky state taxes, they need not be a Kentucky resident. Although, this credit is non-refundable and non-transferable.
If you would like more information or want assistance in applying for the credit, please contact your Rudler, PSC advisor at 859-331-1717.
RUDLER, PSC CPAs and Business Advisors
This e-Tip is presented by Rylan Ellis, Staff Accountant and Evan Kandra, CPA.
If you would like to discuss your particular situation, contact Rylan or Evan at 859-331-1717.
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