Put Money to Work in Communities Act
Senate Bill 684, the “Put Money to Work in Communities Act,” would create a new North Carolina income tax credit for charitable contributions made to endowed funds held by qualified community foundations. The bill is aimed at encouraging long-term philanthropic investment in local communities across all 100 counties by offering a credit equal to 25% of a qualifying contribution of at least $1,000. The credit would be available to both C corporations and individuals, with a maximum annual credit of $50,000 per taxpayer.
To qualify, the contribution must go to an endowed fund at a North Carolina community foundation that meets detailed organizational, governance, and reporting requirements. The bill defines eligible foundations broadly enough to include donor-advised funds, affiliate funds, field-of-interest funds, agency funds, and designated organizational funds, so long as the fund is intended to exist in perpetuity and benefits charitable causes in the state. Taxpayers would have to apply for the credit by April 15 of the following year, keep substantiating records, and reduce their taxable income by any amount already deducted federally to avoid a double benefit. The credit would be capped statewide at $12.5 million per year, prorated if claims exceed that amount, and would sunset for taxable years beginning on or after January 1, 2030.
The bill would amend Chapter 105 of the North Carolina General Statutes by adding parallel tax credit provisions for corporations and individuals: G.S. 105-130.34A and G.S. 105-153.12. It would create a new state tax expenditure, require the Department of Revenue to administer applications and allocate credits when claims exceed the annual cap, and add reporting obligations to the state’s economic incentives report. The measure would also affect community foundations by making them eligible recipients of contributions that generate state tax credits, provided they meet the bill’s certification, governance, and reporting standards.
Based on the bill text alone and the absence of committee transcripts or recorded votes, the overall sentiment appears supportive and promotional rather than contentious. The stated purpose is to strengthen community development and increase charitable investment, and the bill is framed as a statewide benefit for residents in all counties. There is no evidence in the provided materials of opposition, amendments, or divided votes.
The main policy issues embedded in the bill are the cost and structure of the credit, rather than any explicit dispute in the available record. Potential points of contention include the $12.5 million annual statewide cap, the 25% credit rate, the inclusion of donor-advised and other endowed fund types, and the requirement that taxpayers wait until the following tax year to claim the credit. Another likely issue is whether the bill’s broad definition of qualified community foundation and its reporting requirements are sufficient to ensure the credit supports direct community benefit rather than private or indirect charitable vehicles. No specific legislators, groups, or committee members are identified as raising objections in the provided context.