Bill > S684

This bill establishes a tax credit program to incentivize philanthropic investments in North Carolina community foundations by allowing both C Corporations and individual taxpayers to claim a 25% tax credit for qualified charitable contributions to endowed funds. The credit applies to contributions of at least $1,000 to qualified community foundations, with an annual maximum credit of $50,000 per taxpayer. Qualified community foundations must be nonprofit organizations serving specific geographic areas, with independent boards, and must provide grants to at least two unaffiliated tax-exempt organizations. The total aggregate tax credits available statewide are capped at $12.5 million per year, and if applications exceed this amount, credits will be proportionally reduced. Taxpayers can carry forward unused credits for up to five years, and the program includes a sunset provision, expiring for tax years beginning on or after January 1, 2030. The bill requires the Department to report annually on the program's impact, tracking metrics such as the number of individuals taking the credit, total credits claimed, and the program's effect on community development and wealth transfer. The tax credit is designed to encourage long-term philanthropic investment by providing a financial incentive for charitable giving to local community foundations.

https://www.ncleg.gov/BillLookUp/2025/S684