THE ILLINOIS GIVES TAX CREDIT ACT TAKES EFFECT 1/1/25

The Illinois Gives Act (HB 1241/ SB172; now Public Act 103-0592) incentivizes charitable giving by Illinois taxpayers, at all income levels, by authorizing a state income tax credit for 25% of gifts to qualified community foundations’ permanent endowments beginning 1/1/25 (donor advised funds are excluded). Permanent endowments may fund general operating and program grants to nonprofits, provide stable funding during economic downturns and emergencies, and may be used for loan collateral and capital projects. Any nonprofit may establish a permanent endowment by contacting their local community foundation.

The Illinois Gives Act passed as part of HB 4951 / Public Act 103-0592, and can be found in Illinois Compiled Statutes in 35 ILCS 60. Read the fact sheet, FAQ, and press release.

The Illinois Gives Act responds to the impact that the Tax Cuts and Jobs Act of 2017 (TCJA) had on charitable giving. The number of taxpayers taking advantage of the charitable deduction federally significantly decreased after the passage of the TCJA, and charitable giving saw a decline as well as a result. However, the temporary universal charitable deduction in 2020 and 2021 showed the strong interest in these incentives. The Illinois Gives Act will provide an incentive for charitable giving in Illinois to help replace the loss of incentives at the federal level.