House Bill 4121 Summary

• Establishes a 50% tax credit against Michigan income tax for taxpayers who donate cash or food items to shelters for homeless persons, food kitchens, food banks, and other qualifying charitable entities beginning in tax year 2015.

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

• Creates a separate 50% tax credit for charitable contributions made to qualified organizations including institutions of higher learning, public libraries, public broadcast stations, art institutes, community foundations, and the state museum, also capped at $100-$200 for individuals and $5,000 for estates/trusts.

• Requires community foundations to meet multiple federal qualification criteria, maintain at least $100,000 in endowment value within 18 months of establishment, have independent governance, and provide annual audits if endowment exceeds $1,000,000.

• Makes both credits nonrefundable and requires the Department of Treasury to report annually to the legislature on total tax credits claimed under these provisions.