The credit is capped at $500 for individual taxpayers, $1,000 for couples, and cannot exceed one half of the taxpayer’s total Idaho income tax liability. As a result of this credit, a couple donating $2,000 to the library could reduce their Idaho income tax bill by as much as $1,000.
In addition, the donor receives the usual state and federal charitable gift tax deduction. See this ruling of exemption from the IRS, which also lists the library’s EIN, public charity status, and confirmation that contributions to the library are deductible The combined effect of the tax credit and the tax deduction may reduce the net cost of a $2,000 gift to significantly less than $1,000, in some cases to less than $600.
See the WHAT A DEAL! fact sheet about tax credits for contributions to public libraries. Before claiming this credit, you should consult your tax advisor. To discuss other ways of supporting the library operating fund or the library Building Fund–including multiple-year pledges, gifts of stock, or gifts of other assets–please contact the library.