As introduced, LB405 provides for changing income tax credits regarding planned gifts.  Raise the amount of an income tax credit for a charitable planned gift from an individual to a qualified endowment from 15% to 50% and raise the maximum credit per person from $5,000 to $10,000. Change the law to allow a taxpayer whose income tax credit would exceed their tax liability to carry the credit forward for up to five years.  Currently, tax credits cannot be carried over.  Raise the income tax credit maximums that can be taken by small business corporations, partnerships, LLC's and corporations for planned gifts in a similar manner and also allows these entities to carry over the income tax credit for up to five years.  Sen. Cornett proposed an amendment to LB218A to include provisions of LB405, including changing the sunset of Nebraska's Charitable Giving Act to Dec. 31, 2015 (from Jan. 2010) and changing some definitions.  The amendment, unlike LB405 as proposed, would not raise the maximum credit allowed. Sen. Cornett moved, and the body voted, to IPP LB218A.  LB405 WILL CARRYOVER TO THE 2010 LEGISLATIVE SESSION 

Indefinitely postponed April 14, 2010.

• Revenue

• LB405 Amendment-Revenue Committee (03/13/2009)

• No additional documents

• No action alerts are associated with this legislation.

Statement of Intent for LB 405
The following constitutes the reasons for this bill and the purposes which are sought to be
accomplished thereby:
Under current law, irrevocable planned gifts to Nebraska permanent endowments are eligible for a tax credit equal to 15% of present value of the gift. LB 405 would a.) revise the credit to make it more effective and b.) place a cap on the cumulative amount of credits that could be eligible in any calendar year.
Under LB 405, the credit would be 50% of the present value of a planned gift by an individual or S Corporation with a maximum of $10,000 per year. There would be a 25% credit for cash gifts by individuals and Corporations, with a $10,000 maximum. The credits could be carried forward five years.
The maximum credits available under the program in a calendar year would be $3,500,000. The act would be effective January 1, 2009 and would sunset on January 1, 2016.