LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7674 NOTE PREPARED: Jan 9, 2025
BILL NUMBER: HB 1524 BILL AMENDED:
SUBJECT: Tax Credit for Contributions to Qualified Nonprofits.
FIRST AUTHOR: Rep. Sweet BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides a state tax credit for contributions made to a qualified nonprofit
organization for taxable years beginning after December 31, 2025. It provides that the amount allowable as
a credit in a taxable year is equal to the lesser of: (1) the total amount of the contributions made by the
taxpayer to one or more qualified nonprofit organizations; or (2) 50% of the taxpayer's state tax liability. The
bill provides that the maximum amount of credits that may be awarded in a state fiscal year may not exceed
$1 M.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Department of State Revenue (DOR): The DOR will incur additional
expenses to revise tax forms, instructions, and software to reflect the changes made by the bill. The DOR
would also receive reports from qualified nonprofit organizations regarding donations and provide
information on a website about the credit including the total amount of credits awarded during the fiscal year.
The DOR’s current level of resources should be sufficient to implement these changes.
Explanation of State Revenues: The bill establishes a nonrefundable tax credit for contributions to qualified
nonprofit organizations beginning in tax year 2026. The bill could reduce state General Fund revenues by
approximately $1 M annually beginning in FY 2027. The credit may be carried forward. The tax credit may
be applied to Corporate or Individual Adjusted Gross Income (AGI) Tax, Financial Institutions Tax, or the
Insurance Premiums Tax.
The tax credit is limited to the lesser of the total amount of contributions made by the taxpayer to a qualified
nonprofit organization during a taxable year or 50% of the taxpayer’s state tax liability. The total amount of
credits awarded annually is capped at $1 M each fiscal year. Contributions to nonprofit organizations
organized and operated for any of the following purposes are eligible for the credit: recovery residential
services, foster placement services, pregnancy resource services, or addiction recovery services.
Explanation of Local Expenditures:
HB 1524 1 Explanation of Local Revenues:
State Agencies Affected: Department of State Revenue.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1524 2