Bill > HB4248

This bill creates a new tax credit for individual income taxpayers who make donations to endowment funds of community foundations, effective for tax years beginning on or after January 1, 2025. Specifically, taxpayers can claim a credit equal to 50% of their contribution, with a maximum credit of $100 for individual filers and $200 for joint returns. For resident estates or trusts, the maximum credit is limited to 10% of their tax liability or $5,000, whichever is less. To claim the credit, taxpayers must obtain a gift acknowledgment from the community foundation, and the contribution cannot have been previously deducted from federal taxable income. The credit can only be used to offset tax liability and cannot result in a refund. A community foundation must have at least $1,000,000 in assets and be certified by the state department to qualify. The bill also requires the department to report the total amount of tax credits claimed each year to legislative tax committees. The bill will only take effect if a companion bill (Senate Bill or House Bill 4247) is also enacted into law.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4248