A temporary three-year (2014, 2015, and 2016) California tax credit against corporation franchise/income tax and personal income tax was enacted effective September 16, 2014. The credit is limited to $500 million per year on a first-come, first-serve basis, plus unallocated amounts from the previous calendar year. The unallocated 2014 amount is approximately $496 million. The California Educational Facilities Authority (CEFA) is required to allocate and certify the tax credit. Applications for the 2015 taxable year will be accepted from March 2, 2015 through December 31, 2015.
The amount of the California tax credit is the following percentage of the taxpayer’s contribution:
60% – 2014
55% – 2015
50% – 2016
There is no limit on how much can be contributed to the Fund.
In addition to the California tax credit, a federal charitable contribution deduction is also available (subject to the usual federal limitations on deductibility of charitable contributions).
The application and additional information is available online at http://www.treasurer.ca.gov/cefa/catc/index.asp.
Please contact Martini, Iosue & Akpovi by phone at (818) 789-1179 if you have any questions or would like more information.