The Illinois State Legislature enacted the Illinois Gives Tax Credit Act in 2024. For tax years ending on or after December 31, 2025, the program created under this Act offers a state income tax credit to individuals and businesses that submit an application through MyTax Illinois and, following approval of the application, contribute to permanent endowment funds held by Qualified Community Foundations (QCFs). Subject to the limitations referenced below, the state income tax credit is equal to 25% of the amount contributed.
The Illinois Gives Tax Credit Program is subject to an annual program limitation of $5 million in credits per year, with credits being awarded by the Illinois Department of Revenue (IDOR) on a first-come, first-served basis. Additionally, 25% of the annual credit amount is reserved for contributions considered “small gifts,” which are defined as gifts of $25,000 or less. This means that IDOR would only issue credits for “small gifts” for the balance of the year if 75% of the total eligible contributions approved for credit for the year were for gifts larger than $25,000.
In addition to the above-stated program limitations, credits are limited to $100,000 per taxpayer per year.
The Illinois Gives tax credit application for individual and business taxpayers begins January 1, 2025 and is available through MyTax Illinois.
Given the number of steps that need to be taken to receive credits and the annual program limitations, Illinois taxpayers seeking to benefit from the Illinois Gives Tax Credit Program are urged to not delay taking action and seek assistance if needed.
For more information, please contact Jason Gierhahn at [email protected] or your ORBA advisor at 312.670.7444. Sign up here to receive our blogs, newsletters and Client Alerts.
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