Montana Endowment Tax Credit

How it Works

Since 1997, Montana law has provided for the Montana Endowment Tax Credit. This credit is available to individuals and businesses who pay income tax in Montana and make a planned gift that supports a qualified endowment to benefit a tax-exempt charitable 501(c)(3) nonprofit organization.

Frequently Asked Questions

What is the maximum tax credit I can claim? 
The credit is 40% of the planned gift's federal charitable deduction value, up to a maximum of $10,000 per individual or $20,000 per couple. For businesses, the credit is calculated at 20% of the value of the gift, up to a maximum of $10,000. 

Who is eligible? 
Any individual or business that pays income taxes to the State of Montana. 

What is the difference between a tax credit and a tax deduction?
There are a few simple differences between tax credits and tax deductions. Tax credits provide a dollar-for-dollar reduction of your income tax liability. This means that a $10,000 tax credit saves you $10,000 in taxes. Alternatively, tax deductions reduce your total taxable income. 

Which planned gifts qualify?

  • Charitable Gift Annuities
  • Deferred Charitable Gift Annuities
  • Charitable Remainder Unitrusts
  • Charitable Remainder Annuity Trusts
  • Pooled Income Fund Trusts
  • Charitable Lead Trusts
  • Charitable Lead Annuity Trusts
  • Charitable Life Estate Agreements
  • Paid-up Life Insurance Policies

What else do I need to know?

The credit is non-refundable, which means that it cannot reduce your income tax liability to less than zero.

How can I learn more?

Alison SchultzContact Alison Schultz at 406.243.5121 if you would like a personalized gift illustration outlining the benefits of the Montana Endowment Tax Credit. We are here to help!

The Office of Gift Planning provides information about the benefits of planned gifts and does not provide any legal, financial or tax advice. We encourage you to talk with your advisors who are familiar with your specific situation to determine the benefits to you.