The Montana Tax Credit for Endowment Gifts
Funding for the future through endowment giving means your gift is held and invested in perpetuity-only income is used for accomplishing the purpose of the gift. The Montana Tax Credit provides an extraordinary opportunity to reduce your Montana taxes by directing funds to the college's endowment fund or to another qualified endowment fund here in Montana. It is the greatest tax savings program benefiting Montanans ever offered businesses and individuals. It involves a direct credit against the tax (even better than a deduction), which otherwise you would have to send to Helena, when you make a charitable gift for the benefit of a qualified endowment, such as we have in the FVCC Foundation.
Large Businesses
The maximum credit that may be claimed for all contributions by a corporation doing business in Montana is $10,000 per year and the credit is limited to 20% of the charitable contribution. Direct gifts of cash, securities, real estate, or other assets qualify for the tax credit.
Small Businesses and Estates
Partnerships, limited liability companies (LLC's), small businesses (S Corporations), and estate beneficiaries are allowed the same Montana Tax Credit - up to $10,000 per year per partner in LLC's, partnerships, or S Corporations, and per estate beneficiary. The credit is limited to 20% of the charitable contribution. Direct gifts of cash, securities, real estate, or other assets qualify for the tax credit.
Individuals
The statute requires individuals to donate through a charitable planned gift and allows a tax credit of up to 40% against Montana income tax owed. The maximum credit is $10,000 or $20,000 if filing jointly. Cash, securities, real estate, and other assets can be used to fund a charitable planned giving instrument to qualify for the tax credit, including charitable lead trusts, charitable remainder trusts, charitable gift annuities, and life estate agreements. A paid-up life insurance policy also can be utilized.