Bill Text: MI HB4388 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Individual income tax; credit; credit for donation to certain charitable organizations and community foundations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 261.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-20 - Bill Electronically Reproduced 03/20/2019 [HB4388 Detail]
Download: Michigan-2019-HB4388-Introduced.html
HOUSE BILL No. 4388
March 19, 2019, Introduced by Rep. Witwer and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding section 261.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 261. (1) For tax years beginning on and after January 1,
2019 and subject to the applicable limitations in this section, a
taxpayer may claim a credit against the tax imposed by this part in
an amount equal to 50% of the sum of the cash amount and, if food
items are contributed in conjunction with a program in which a
vendor makes a matching contribution of similar items, the value of
those food items, the taxpayer contributes during the tax year to a
shelter for homeless persons, food kitchen, food bank, or other
entity located in this state, the primary purpose of which is to
provide overnight accommodation, food, or meals to persons who are
indigent if a contribution to that entity is tax deductible for the
donor under the internal revenue code. For a taxpayer other than a
resident estate or trust, the maximum credit allowed under this
subsection shall not exceed $100.00, or $200.00 for a joint return.
For a resident estate or trust, the maximum credit allowed under
this subsection shall not exceed 10% of the taxpayer's tax
liability for the tax year before claiming any credits allowed by
this part or $5,000.00, whichever is less.
(2) For tax years beginning on and after January 1, 2019, a
taxpayer may claim a credit against the tax imposed by this part
for the tax year in an amount, subject to the applicable
limitations under this section, equal to 50% of the amount the
taxpayer contributes during the tax year to a community foundation.
For a taxpayer other than a resident estate or trust, the maximum
credit allowed under this subsection shall not exceed $100.00, or
$200.00 for a joint return. For a resident estate or trust, the
maximum credit allowed under this subsection shall not exceed 10%
of the taxpayer's tax liability for the tax year before claiming
any credits allowed by this part or $5,000.00, whichever is less.
(3) For a resident estate or trust, the amount used to
calculate the credits under this section shall not have been
deducted in arriving at federal taxable income.
(4) If the amount of the credits allowed under this section
exceeds the tax liability of the taxpayer for the tax year, the
portion that exceeds the tax liability shall not be refunded.
(5) An entity other than a community foundation may request
that the department determine if a contribution to that entity
qualifies for the credit under subsection (2). The department shall
make a determination and respond to a request no later than 30 days
after the department receives the request.
(6) On or before July 1 of each year, the department shall
report to the house committee on tax policy and the senate finance
committee the total amount of tax credits claimed under this
section for the immediately preceding tax year.
(7) As used in this section, "community foundation" means an
organization that applies for certification on or before May 15 of
the tax year for which the taxpayer is claiming the credit and that
the department certifies for that tax year as meeting the
requirements of a community foundation as provided in section 3 of
the Michigan community foundation act, 2017 PA 38, MCL 123.903.
However, for purposes of this section, the organization only needs
to have assets of at least $1,000,000.00 to qualify for
certification by the department.
