TEC is recognized as a qualified 501(c)(3) charitable organization by the IRS, and also qualifies for the Missouri tax credit program for 2005. As a result, donors who givea at least $3000 will receive a Missouri state tax credit certificate that can be used dollar for dollar against the donors' state income tax liability. The tax credit can be used for current year tax liability, carried forward into future years, or transferred to another Missouri taxpayer.

Based on the assumption of a donation of $10,000 to TEC, if the donor is in the 35% federal tax bracket and the 6% MO tax bracket, the tax benefits from the donation may be as follows:

A donation will qualify for a federal charitable donation income tax deduction of $10,000, which reduces the donor's federal income tax liability by $3,500 in the above example. "Double" counting of the TEC donation is permitted under federal income tax law and for the Missouri tax credit laws because of the unique combination of federal and state tax benefits afforded a not-for-profit organization like TEC. The donation is also deductible for state income tax purposes.

Disclaimer

The above information is being provided for illustration purposes only. TEC is not engaged in rendering legal, tax, or other professional advice, and this illustration is not intended as a substitute for the advice of a competent tax expert. TEC strongly recommends that interested donors consult with their own tax professional to determine the exact tax benefit which can be obtained through a donation to TEC.