The Montana qualified endowment tax credit
Current Law
A brief guideline to the current Montana Qualified Endowment Tax Credit law.
July 1, 2003 through December 31, 2023:
- Planned Gift – 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. [Applies to individual or business entity taxpayers.]
- Outright Gift – 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 charity up to a maximum of $10,000 per year per taxpayer. [Applies to corporations, small business corporations, partnership or limited liability company taxpayers.]
January 1, 2024 in perpetuity:
- Planned Gift – 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 $15,000 per year per taxpayer. [Applies to individual or business entity taxpayers.]
- Outright Gift – 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 charity up to a maximum of $15,000 per year per taxpayer. [Applies to corporations, small business corporations, partnership or limited liability company taxpayers.]
Legislative Update
The 2023 Montana Legislature increased the maximum credit effective January 1, 2024 and made the Qualified Endowment Tax Credit permanent law. See Senate Bill 506.
Originally enacted in 1997, the Montana Income Tax Credit for Endowed Philanthropy encourages charitable giving to qualified endowments by offering incentives to Montana taxpayers.
An endowment is a fund held by a tax-exempt organization where the principal of the fund is not wholly expendable. Monies appropriated from an Endowment must follow Prudent guidelines as cited in UPMIFA (see MCA 72-30-209).
Endowments are established to help Montanans meet long-term needs in our communities for education, social services, health care, economic development, the arts and more.
Form QEC
The Montana Department of Revenue Form QEC for claiming the Qualified Endowment Credit is available in PDF format; click on MT Form QEC.
Montana Code Annotated
- Definition of a Planned Gift 15-30-2327(1) MCA
- Definition of a Qualified Endowment 15-30-2327(2) MCA
- Defining the Tax Credit for Planned Gifts 15-30-2328 MCA
- Defining the Tax Credit for Outright Gifts by Business Entities 15-31-161 and 15-31-162 MCA
- Charitable Gift Annuity Exemption Act 33-20-701 and 33-20-702 MCA
- Uniform Prudent Management of Institutional Funds Act 72-30-101 thru 103 and 72-30-207 thru 213 MCA.
Gifts to Yellowstone Foundation’s Endowment Fund are (1) Good for Montana, (2) Good for Donors, and (3) Good for Children in Need.
Visit our Planned Giving page or call us at 1-800-879-0850 for more information.
