On February 6, the Ohio House Finance and Appropriations Committee heard sponsor testimony from Chairman Barbara Sears (R-Monclove Twp.) and Ron Amstutz (R-Wooster) regarding H.B. 408, which would authorize an income tax credit for donations to the permanent endowment fund of an eligible community foundation. The two representatives said the bill was designed to provide a stronger incentive for people of "more modest means" to contribute to community foundations by making donors "eligible for a non-refundable tax credit that is limited to the lesser of 20 percent of the qualifying donation or $10,000 per individual / $20,000 per joint filer and can be carried forward for up to five taxable years," according to the Gongwer Ohio Report.
An eligible community foundation would include "any foundation exempt from federal income taxation and publishes at least annually and circulates widely within its community an audited report of its fund balance activities and donors," according to The Hannah Report.
A cost-benefit analysis for the legislation should be completed soon, and is expected to answer questions regarding whether this tax break will primarily benefit the wealthy and whether the measure will actually "increase the total amount of money flowing into communities," Gongwer reports. The sponsors said they were open to potentially specifying a "certain percentage split between rural and urban investment." For more, read the full text of H.B. 408.