Bill Text: MI SB0113 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Individual income tax: credit; tax credit for charitable donations to food banks, shelters, and community foundations; restore. Amends 1967 PA 281 (MCL 206.1 & 206.713) by adding sec. 261.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-09 - Referred To Committee On Finance [SB0113 Detail]
Download: Michigan-2021-SB0113-Introduced.html
SENATE BILL NO. 113
February 09, 2021, Introduced by Senator
RUNESTAD and referred to the Committee on Finance.
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, 2021 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, 2021, 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 123.901. 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.
