Bill > HB4754

This bill creates two new sections (260 and 679) in Michigan's Income Tax Act that allow taxpayers to claim tax credits for cash and food donations to certain nonprofit organizations starting in tax year 2026. Specifically, taxpayers can receive a credit for contributions to shelters for homeless persons, food kitchens, food banks, or other entities primarily focused on providing overnight accommodation, food, or meals to indigent persons (defined as individuals with household income less than 140% of the federal poverty level). For individual taxpayers, the maximum credit is $150 for single filers and $300 for joint filers, while for resident estates or trusts, the credit is limited to 10% of tax liability or $7,500, whichever is less. To claim the credit, taxpayers must obtain a written acknowledgment from the recipient organization detailing the contribution date, amount, and confirming the organization's primary purpose, tax-deductibility, and compliance with civil rights laws. If the credit amount exceeds the taxpayer's tax liability, the excess will be refunded. The bill also requires the state department to report annually on the total tax credits claimed under these new provisions.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4754