An incentive to encourage donations to community foundations has recently been enacted by the state of Kentucky. The Endow Kentucky Tax Credit is a non-refundable income tax and LLE (Limited Liability Entity) tax credit that will provide a credit of 20% of the endowment gift up to $10000. Any unused credit may be carried forward for up to five years. Kentucky only awards $500000 per fiscal year for this tax credit so applications for approval must be submitted. After the application approval the taxpayer or LLE must make the gift to a community foundation within 30 days and provide the Department of Revenue with proof of the gift to the foundation of choice.
For more information on the EKTC as well as how to apply click here.