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.
#TaxUpdate #CorporateGiving #CharitableContributions #C-corporations #TaxPlanning

Video Script
Corporate charitable contributions are about to face a major tax change. Right now, C corporations can deduct charitable contributions up to 10% of taxable income. But starting in 2026, things shift. A 1% floor will be introduced. That means only contributions above 1% of taxable income will qualify as deductible, still capped at the 10% limit. What does this mean? Corporations won’t get tax benefits for the first 1% of giving. Strategic planning for philanthropy just became more critical. If your business is committed to charitable giving, the time to prepare is now, so your contributions stay impactful and tax-efficient.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.