Senate looking to restore charitable tax credits

Published 12:53 pm Tuesday, February 23, 2016

LANSING — The Senate Finance Committee has approved legislation to restore tax credits for certain charitable donations, said Sen. John Proos, who serves on the committee and is co-chair of the Michigan Nonprofit Caucus.

“There are many charitable organizations throughout Southwest Michigan that make a positive impact on the lives of struggling families and improve our entire community,” said Proos, R-St. Joseph. “I strongly believe that the people know best the needs of their communities, and these bills would help residents put their hard-earned money to the best use to help their neighbors.

Senate Bills 461-464, sponsored by Sens. Patrick Colbeck, R-Canton; Tonya Schuitmaker, R-Lawton; and Goeff Hansen, R-Hart; would restore personal income tax credits for charitable donations to libraries, colleges and universities, food banks and homeless shelters. Credits would also be reinstated for adoption expenses and automobile donations.

“Restoring these charitable credits can incentivize Michigan taxpayers to make a difference and contribute to wonderful charities like the United Way, Big Brothers Big Sisters of America, the American Red Cross or the Wounded Warrior Project,” Proos said.

SB 461 would allow taxpayers to receive a credit for donations made to various programs in public art, libraries, radio, institutions of higher learning and museums. SB 462 would allow a taxpayer to receive a credit for donations made to food banks and kitchens, homeless shelters, and community foundations.

SBs 463 and 464 would allow a taxpayer to receive a credit to offset qualified expenses for adoptions and a credit for automobile donations to qualified charitable organizations, respectively.

The credit amount would be up to 50 percent of the charitable contribution. The maximum credit would not exceed $100 for an individual or $200 for a joint return under SBs 461-462; $1,200 under SB 463; and $50 for an individual or $100 for a joint return under SB 464.

The bills have been sent to the full Senate for consideration.