Bill > HB4247

This bill creates a new tax credit for individual taxpayers who make cash or food donations to charitable organizations that provide accommodation, food, or meals to indigent people in Michigan. Specifically, taxpayers can claim a credit equal to 50% of their contributions to shelters, food kitchens, food banks, or similar entities, with some important limitations: individual taxpayers can claim up to $100 (or $200 for joint returns), while resident estates or trusts can claim up to 10% of their tax liability or $5,000, whichever is less. To qualify for the credit, donors must obtain a written acknowledgment from the charitable organization detailing the contribution date, amount, and confirming that the organization's primary purpose is serving people whose household income is less than 140% of the federal poverty level. The organization must also confirm its compliance with civil rights laws and that donations are tax-deductible. The credit cannot be refunded if it exceeds the taxpayer's tax liability, and the state department will be required to report the total credits claimed each year to legislative committees. The tax credit will be available for tax years beginning on or after January 1, 2025, and is contingent upon the passage of a related bill.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4247