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Corporate Charitable Contributions: Important Tax Change Ahead

Corporate Charitable Contributions: Important Tax Change Ahead

Under current law, C corporations can deduct charitable contributions up to 10% of taxable income.

  • But starting in 2026, there’s a major shift:
  • A 1% floor will be introduced.
  • Only contributions above 1% of taxable income will qualify as deductible, still capped at the 10% limit.

What this means:

Companies will no longer get tax benefits for the first 1% of charitable giving.

Strategic planning for corporate philanthropy just became even more critical.

If your corporation is actively involved in charitable giving, now is the time to start preparing for this change. Thoughtful planning will ensure your contributions remain impactful and tax-efficient.