Sec. 05.14.02.05. Procedures for Claiming and Using Tax Credits

A. Requests for Certification of Donation.

(1) In order to claim a tax credit for a donation under the Act, the taxpayer shall submit a request for certification through the community foundation on forms provided by the Department, together with any documentation of the donation as required by the Department.

(2) Each request for certification of a donation shall contain:

(a) The name of the taxpayer;

(b) The community foundation to which the donation will be made;

(c) The community foundation identification number;

(d) The qualified permanent endowment fund to which the donation will be made; and

(e) The amount of the donation.

B. Approval of Certification of Donation.

(1) The Department shall:

(a) Approve all applications that qualify for a tax credit certificate under this section on a first-come, first-served basis and in a timely manner; and

(b) Reserve for each taxable year at least 10 percent of the available credits for donations of $30,000 or less.

(2) Within 30 days of the approval of a proposed donation:

(a) The taxpayer shall submit to the Department a receipt from the community foundation for the donation;

(b) In the case of:

(i) A cash donation, proof of the amount of the donation; or

(ii) Publicly marketed securities, a certification by an independent and unrelated third party as to the value of the donation consistent with Internal Revenue Service Publication 561; and

(c) Any other information considered necessary by the Department.

(3) Notice of certification may be made by the Assistant Secretary for Neighborhood Revitalization.

C. Timing.

(1) A request for certification may not be accepted for donations received before January 1, 2015.

(2) An initial claim for a tax credit shall be made for the taxable year in which the donation is made.

(3) The donation shall be received by the community foundation within the deadline set by the Department.

(4) A request for certification shall be submitted by the community foundation and received by the Department by the later of:

(a) The end of the taxable year; or

(b) One month after the donation is made.

D. Refusal to Certify Donation. The Department may refuse a request for certification of a donation if it determines that:

(1) The maximum amount of donations eligible for tax credits for a qualified permanent endowment fund would be exceeded by the sum of:

(a) The amount of the proposed donation; and

(b) The total amount of donations previously certified as eligible for tax credits for the State's fiscal year;

(2) The taxpayer has overstated the value of any publicly traded securities included;

(3) The request for certification is not made in a timely manner; or

(4) The request for certification does not comply with the Act or the Department’s policies and procedures regarding the tax credits.

E. Calculating the Tax Credit.

(1) The tax credit allowed to a taxpayer shall be equal to 25 percent of the amount of the donation that:

(a) Was made in the taxable year of the taxpayer; and

(b) Has been certified by the Department.

(2) For any taxable year, the sum of all tax credits for any taxpayer, including any carryover credits, may not exceed the lesser of:

(a) $50,000; or

(b) The total amount of tax otherwise payable by the taxpayer for the taxable year.

(3) Any excess credit that would have been allowed but for the limitations of §D(2) of this regulation may be carried over and applied as a credit for succeeding taxable years until the earlier of:

(a) The full amount of the excess tax credit is used; or

(b) The expiration of the fifth taxable year after the taxable year in which the donation was made.

F. The same tax credit may not be applied more than once against different taxes by the same taxpayer.

G. The sum of donations eligible for tax credits for all qualified permanent endowment funds approved for each State fiscal year may not exceed $250,000.