You can claim a credit against your income tax liability for contributions made to a qualified Montana endowment held by a Montana corporation or established organization that is tax-exempt under 26 USC 501(c)(3) or is held by a bank or trust company in Montana on behalf of the taxexempt organization.
Your credit is equal to 40% of the present value of a planned gift that you personally made during the year to the qualified Montana endowment. If you are a shareholder in an S corporation, a partner in a partnership, or a member or manager of a limited liability company and your entity made a contribution to a qualified Montana endowment, you are entitled to a credit equal to 20% of your share of the entity’s outright gift or 40% of your share of the entity’s planned gift. In no case can your credit be larger than $10,000 for your contribution and, when applicable, $10,000 for your spouse. When claiming this credit, you cannot claim a charitable contribution deduction on Form 2, Schedule III, for the amount of the contribution that you used to calculate this credit.
For further instructions on the qualified endowment credit, and to calculate this credit, see Montana Form QEC. Visit the Governor’s Task Force on Endowed Philanthropy website at mtnonprofit.org/endowMontana/ to learn more about the endowments statewide. When you claim this credit, you will have to include a copy of Form QEC with your tax return.