HB 5394 Summary

• Establishes a tax credit equal to 50% of cash and food item contributions made to homeless shelters, food kitchens, food banks, and similar entities in Michigan, beginning in tax year 2014.

• Limits the credit to $100 per individual taxpayer or $200 for joint returns; resident estates or trusts may claim up to 10% of tax liability or $5,000, whichever is less.

• Creates a separate 50% tax credit for charitable contributions to qualified community foundations, institutions of higher learning, public libraries, public broadcast stations, art institutes, the state museum, and the Michigan colleges foundation, with the same $100/$200 limits for individuals and $5,000 limit for estates and trusts.

• Requires community foundations to meet specific federal tax-exempt standards, maintain at least $100,000 in endowment value within 18 months of incorporation, have independent governance, and undergo annual audits or reviews depending on endowment size.

• Makes both credits nonrefundable (cannot reduce tax liability below zero) and requires the department to report total credits claimed annually to legislative tax and finance committees.