Bill > SB0132

This bill creates a new tax credit for individuals who donate to endowment funds of community foundations in Michigan, effective for tax years beginning January 1, 2026. The credit allows taxpayers to claim 50% of their donation as a tax credit, with specific limits: individual taxpayers can claim up to $100, joint filers up to $200, and resident estates or trusts can claim up to 10% of their tax liability or $5,000, whichever is less. To qualify, taxpayers must obtain a gift acknowledgment from the community foundation and the donation cannot have been previously deducted from federal taxable income. The credit can only reduce tax liability and cannot result in a refund if the credit exceeds taxes owed. Community foundations must be certified by the state and have at least $1 million in assets to qualify. The Michigan Department of Treasury is required to report the total amount of tax credits claimed each year to legislative finance committees, providing transparency about the economic impact of this tax incentive designed to encourage charitable giving to local community foundations.

Budget and Finance, Business and Industry

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0132