Provide income tax credits for contributions to a community improvement organization

2025 Regular Session

Creates an income tax credit for cash donations to designated community improvement organizations, boosting funding for local projects and communities.

(LC) Draft Delivered to Requester

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Overview and Purpose

LC 4176 would establish an income tax credit for contributions made to a designated community improvement organization (CIO). The intent is to incentivize taxpayers to support local community projects by providing a credit against state or local income taxes for qualifying donations. The bill's aim aligns with local finance and state taxation tools to bolster funding for community-focused initiatives.

Note: The prompt does not include the bill text, so specific credit mechanics (rates, caps, eligible organizations, and sunset provisions) are not stated here. The following provisions indicate the general framework the text is expected to establish.

Key Provisions (expected framework)

Create a taxpayer income tax credit for cash contributions to an eligible community improvement organization.

Define what constitutes a "community improvement organization" and which activities or projects are eligible.

Establish eligibility criteria for donors (individuals, corporations, or both) and the type of contributions that qualify (likely cash donations; potential exclusions or inclusions for in-kind gifts).

Specify the credit amount and structure (e.g., a percentage of qualified contributions, a maximum per taxpayer per year, and whether the credit is refundable or nonrefundable).

Include any caps, sunset dates, carryover provisions, or limits on the total credits available in a measure year.

Outline administration and compliance requirements, including who administers the credit (likely a state department of revenue), documentation needed for claiming the credit, and reporting requirements for CIOs and donors.

Define penalty provisions for misuse or fraud and any anti-abuse safeguards.

Address coordination with other tax provisions (e.g., interaction with other tax credits or charitable giving deductions).

Affected Parties

Taxpayers who make qualifying contributions to designated CIOs (likely individuals and/or corporations).

Community improvement organizations designated under the bill.

State or local tax authorities responsible for administering and monitoring the credit.

Local governments and communities benefiting from funded projects may experience changes in fundraising dynamics and project funding.

Procedural and Timeline Aspects

Introduced: December 20, 2024.

Status: LC (Draft Delivered to Requester).

Legislative actions timeline:

2024-12-20: Drafter Assigned.
2025-03-18 to 2025-03-21: Drafts progressed through Legal Review, Edit, Input/Proofing, Assembly, and Final Drafter Review.
2025-03-21: Draft Delivered to Requester.

The bill is currently in the draft stage and subject to amendments before any potential floor consideration.

Next Steps for Readers

Review the full bill text when available to confirm credit rate, caps, eligibility, and sunset provisions.

Monitor Committee actions and fiscal notes to understand potential revenue impact and administrative requirements.

Consider how the credit would interact with existing charitable giving incentives and local government financing strategies.

Bill