SSB 1041

Postsecondary institutions and entities that receive 25 percent or more of their annual budget from a postsecondary institution do not qualify. In order to claim a tax credit, the taxpayer must submit an application to the department of revenue (department) on or after the date of the charitable contribution, and have that application approved by the department. No more than $10 million in tax credits may be approved per fiscal year. If applications for the tax credit exceed that amount, the department is required to establish a wait list in the order the applications were received and those applicants will receive priority for receiving tax credits in succeeding years. The tax credit is nonrefundable, but any amount in excess of the taxpayer’s tax liability may be carried forward for up to four years. The tax credit cannot be carried back to a prior tax year. For tax credit applications received and approved by the department in the fiscal year during which the charitable contribution is made, the tax credit shall be claimed for the tax year during which the charitable contribution is made. For applications approved by the department in any later fiscal year, the tax credit shall be claimed for the tax year during which the application is approved. _____ charitable contributions made on or after that date.