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(Lincoln, NE) Gov. Dave Heineman held a ceremonial bill signing for LB 28, which offers state income tax credits for qualified individual and corporate donations made to non-profit organizations with endowments based in Nebraska.
“This program encourages people and businesses to endow our great state with a future of new promise,” Gov. Heineman said. “We are doing all we can at the state level to stimulate the economy, and this is another tool families and Nebraska’s private sector can use to invest in the future of the places they live, work and do business.”
Sen. Matt Connealy of Decatur introduced LB 28 and joined the Governor, along with state and local representatives in touting the potential benefits of this endowment program to non-profit organizations such as regional economic development cooperatives, community college and university foundations, and community improvement efforts. In all, 22 senators signed on to sponsor the bill.
The bill creates state income tax credits of up to $10,000 a year for planned gifts to qualified 501(c) 3 non-profit organizations. Corporations can deduct 20 percent of their total contribution, up to the $10,000 annual cap. Individuals can deduct 30 percent, up to that amount. The law goes into effect on Jan. 1, 2006, and expires Jan. 1, 2010.
According to the most recent available figures, 11 states offer donation tax credits similar to the ones set forth in LB 28. Montana is one state that has seen the positive impact created by incentives for charitable giving. Recent reports indicate that $74 million has been added to Montana-based endowments in the last five years, according to EndowNebraska. The organization’s current estimates indicate that as much as $94 billion in wealth will be transferred between generations over the next 50 years in Nebraska.
Sen. Connealy said, “LB 28 provides another way for communities to help spur economic development. It is imperative that we keep building wealth in our communities by ensuring the continued ownership of our assets. This new credit will encourage Nebraskans to think first of Nebraska non-profits when they make their charitable giving decisions.”
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