Tax Incentives

During the 2010 legislative session, the Idaho Legislature passed two bills that significantly enhance the income tax credits for donations to Idaho schools and other organizations.

Legislation clarifies that contributions to nonprofit foundations, located in Idaho, qualify for additional tax credits

As illustrated in the example below, the tax credit (not to be confused with a tax deduction...this amounts to a credit towards what you would owe on your state income taxes) equals 50% of the contribution and is limited to 50% (rather than 20% under existing law) of an individual taxpayer’s total Idaho income tax liability. The maximum annual amount of the credit is increased from $100 ($200 on a jointly filed return) to $500 ($1,000 on a joint return)

Example:
A husband and wife file a joint income tax return in which they itemize their deductions. Their taxable income (after deductions) is between $17,000 and $68,000. They decide to contribute $1,000 to a local school.

As a result of being able to deduct the contribution, their federal and state income taxes are reduced by $228. (Savings may be more or less depending on their income tax bracket.) In addition, their Idaho income tax credit saves them another $500 (50% of the $1,000 donation). As a result, the $1,000 donation to the school would only be a net costs of $272. Please note that people who do not itemize their deductions would not realize the $228 tax savings, but would still get the $500 credit.

To donate, fill out the Donation Form and send it to the address shown. You will receive a receipt for your taxes.

For further questions on this tax credit feel free to consult with your tax advisor or call the Foundation Treasurer, Brad Smith, at (208) 356-8500.