HOUSE BILL NO. 4247 A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.847) by adding section 260. the people of the state of michigan enact: Sec. 260. (1) For tax years beginning on and after January 1, 2025 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 under section 170 of the internal revenue code. For a taxpayer other than a resident estate or trust, the maximum credit allowed under this subsection must not exceed $100.00, or $200.00 for a joint return. For a resident estate or trust, the maximum credit allowed under this subsection must 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) To claim a credit under this section, the taxpayer must have received a written acknowledgment from the entity to which the contribution was made. The department may require a taxpayer claiming the credit under this section to submit a copy of the written acknowledgment of the contribution for which the credit is being claimed. The written acknowledgment required under this subsection must include all of the following: (a) The date of the contribution. (b) The amount of cash contributed or, if food items are contributed in conjunction with a program in which a vendor makes a matching contribution of similar items, an estimate of the value of those food items. (c) An attestation that the primary purpose of the entity is to provide overnight accommodation, food, or meals to persons who are indigent. (d) An attestation that contributions to the entity are deductible under section 170 of the internal revenue code. (e) An attestation that the entity is in compliance with the Elliott-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to 37.2804. (3) For a resident estate or trust, the amount used to calculate the credit under this section must not have been deducted in arriving at federal taxable income. (4) If the amount of the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, the portion that exceeds the tax liability must not be refunded. (5) On or before July 1 of each year, the department shall report to the house committee on tax policy and the senate finance, insurance, and consumer protection committee the total amount of tax credits claimed under this section for the immediately preceding tax year. (6) As used in this section: (a) "Federal poverty level" means the poverty guidelines published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902. (b) "Persons who are indigent" means persons whose household income is less than 140% of the applicable federal poverty level. (c) "Primary purpose" means the predominant purpose to which all operations of the entity are directed, as stated in a mission statement, organizational document, or other document that describes the entity's operations, or as established from other business records of the entity. Enacting section 1. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S00397'25) or House Bill No. 4248 (request no. H00397'25) of the 103rd Legislature is enacted into law.
HOUSE BILL NO. 4247
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding section 260.
the people of the state of michigan enact:
Sec. 260. (1) For tax years beginning on and after January 1, 2025 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 under section 170 of the internal revenue code. For a taxpayer other than a resident estate or trust, the maximum credit allowed under this subsection must not exceed $100.00, or $200.00 for a joint return. For a resident estate or trust, the maximum credit allowed under this subsection must 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) To claim a credit under this section, the taxpayer must have received a written acknowledgment from the entity to which the contribution was made. The department may require a taxpayer claiming the credit under this section to submit a copy of the written acknowledgment of the contribution for which the credit is being claimed. The written acknowledgment required under this subsection must include all of the following:
(a) The date of the contribution.
(b) The amount of cash contributed or, if food items are contributed in conjunction with a program in which a vendor makes a matching contribution of similar items, an estimate of the value of those food items.
(c) An attestation that the primary purpose of the entity is to provide overnight accommodation, food, or meals to persons who are indigent.
(d) An attestation that contributions to the entity are deductible under section 170 of the internal revenue code.
(e) An attestation that the entity is in compliance with the Elliott-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to 37.2804.
(3) For a resident estate or trust, the amount used to calculate the credit under this section must not have been deducted in arriving at federal taxable income.
(4) If the amount of the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, the portion that exceeds the tax liability must not be refunded.
(5) On or before July 1 of each year, the department shall report to the house committee on tax policy and the senate finance, insurance, and consumer protection committee the total amount of tax credits claimed under this section for the immediately preceding tax year.
(6) As used in this section:
(a) "Federal poverty level" means the poverty guidelines published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902.
(b) "Persons who are indigent" means persons whose household income is less than 140% of the applicable federal poverty level.
(c) "Primary purpose" means the predominant purpose to which all operations of the entity are directed, as stated in a mission statement, organizational document, or other document that describes the entity's operations, or as established from other business records of the entity.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S00397'25) or House Bill No. 4248 (request no. H00397'25) of the 103rd Legislature is enacted into law.