The Montana Income Tax Credit for Endowed Philanthropy
A brief guideline to the current Montana Qualified Endowment Credit law.
July 1, 2003 through December 31, 2025:
- 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.]
The 2019 Montana Legislature extended the Endowment Tax Credit through 2025. See Senate Bill 111.
Originally enacted in 1997, the Montana Income Tax Credit for Endowed Philanthropy encourages charitable giving to qualified endowments by offering incentives to Montana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. Only the interest and appreciation earned in an endowment fund can be used for current operations.
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.
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 thru 705 MCA
- Uniform Prudent Management of Institutional Funds Act 72-30-101 thru 103 and 72-30-107 thru 213 MCA.