Brixey & Meyer Blog

Kentucky Tax Planning Opportunity: Endow Kentucky Tax Credit

Written by Angela Wurtenberger | Jun 10, 2026 2:46:59 PM

As you evaluate charitable giving opportunities, we wanted to share a Kentucky tax credit program that may provide additional tax savings for qualifying taxpayers.

The Endow Kentucky Tax Credit Program allows Kentucky taxpayers—including individuals and businesses—to receive a state income tax credit equal to 20% of qualifying charitable contributions made to endowed funds at approved community foundations benefiting Kentucky nonprofits.

Key benefits include:
  • State tax credit of up to $10,000 per taxpayer or $20,000 for married couples filing jointly

     

  • Credit may be carried forward for up to five years

     

  • Available in addition to applicable federal and Kentucky charitable contribution deductions

     

  • Contributions may be made with cash or appreciated securities

Important Timing Consideration

The Commonwealth of Kentucky will make $1 million of Endow Kentucky tax credits available beginning July 1, 2026. Historically, these credits have been claimed quickly, making early action important for taxpayers interested in participating.

How the Program Works

  • Beginning July 1, submit an application to the Kentucky Department of Revenue identifying the qualified endowment fund you intend to support.

  • Upon receiving preliminary approval, complete your charitable contribution within 30 days.

  • After the gift is verified, the Department of Revenue will issue confirmation of your tax credit.

If charitable giving is part of your tax or estate planning strategy, this program may provide an opportunity to maximize both your philanthropic impact and tax benefits.

Additional Resources

For clients interested in pursuing the Endow Kentucky Tax Credit, the following resources provide application materials and instructions:

 

Questions? Brixey & Meyer is here to help. Contact us to discuss whether the Endow Kentucky Tax Credit may be a good fit for your tax and charitable giving goals.

 

-- Angela Wurtenberger

Cincinnati Office Managing Partner Services