Bill Text: MI HB4864 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Michigan business tax; credit; credit for contributions to any charitable organization; provide for and include insurance companies. Amends sec. 421 of 2007 PA 36 (MCL 208.1421).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2009-04-30 - Printed Bill Filed 04/30/2009 [HB4864 Detail]
Download: Michigan-2009-HB4864-Introduced.html
HOUSE BILL No. 4864
April 29, 2009, Introduced by Reps. Byrum, Opsommer, DeShazor, Cushingberry, Haugh, Horn, Denby and Dean and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 421 (MCL 208.1421).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 421. (1) A taxpayer that is not subject to the income tax
act of 1967, 1967 PA 281, MCL 206.1 to 206.532, may claim a credit
against the tax imposed by this act, subject to the applicable
limitations under this section, equal to 50% of the aggregate
amount of charitable contributions made by the taxpayer during the
tax year to all of the following:
(a) A public broadcast station as defined by 47 USC 397 that
is not affiliated with an institution of higher education.
(b) A public library.
(c) An institution of higher learning located in this state or
a nonprofit corporation, fund, foundation, trust, or association
organized and operated exclusively for the benefit of an
institution of higher learning.
(d) The Michigan colleges foundation.
(e)
The Michigan housing
and community development fund
created
in section 3 of the Michigan housing and community
development
fund act, 2004 PA 479, MCL 125.2823 23 of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1423.
(f) For tax years that begin after December 31, 2008, an
organization described in section 501(c)(3) of the internal revenue
code.
(2) The tax credit allowed under this section for a donation
under subsection (1)(c) is allowed only if the donee corporation,
fund, foundation, trust, or association is controlled or approved
and reviewed by the governing board of the institution of higher
learning that benefits from the charitable contributions. The
nonprofit corporation, fund, foundation, trust, or association
shall provide copies of its annual independently audited financial
statements to the auditor general of this state and chairpersons of
the appropriations committees of the senate and house of
representatives.
(3) The credit allowed under this section for any tax year
shall not exceed 5% of the tax liability of the taxpayer for that
tax year as determined without regard to this section or $5,000.00,
whichever is less.
(4) If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
portion of the credit that exceeds the tax liability shall not be
refunded.
(5) For purposes of this section and for tax years that begin
after December 31, 2008, taxpayer includes a person subject to the
tax imposed under chapter 2A.
(6) (5)
As used in this section:
(a) "Institution of higher learning" means an educational
institution located within this state meeting all of the following
requirements:
(i) Maintains a regular faculty and curriculum and has a
regularly enrolled body of students in attendance at the place
where its educational activities are carried on.
(ii) Regularly offers education above the twelfth grade.
(iii) Awards associate, bachelor's, master's, or doctoral
degrees or any combination of those degrees or higher education
credits acceptable for those degrees granted by other institutions
of higher learning.
(iv) Is recognized by the state board of education as an
institution of higher learning and appears as an institution of
higher learning in the annual publication of the department of
education entitled "the directory of institutions of higher
education".
(b) "Public library" means a public library as defined in
section 2 of the state aid to public libraries act, 1977 PA 89, MCL
397.552.
