MI SB0405

Establishes a 50% tax credit for Michigan taxpayers on charitable contributions made to shelters for homeless persons, food kitchens, food banks, accredited zoological parks, and museums, effective for tax years beginning January 1, 2018.

Creates an additional 50% tax credit for contributions to community foundations with maximum limits of $100 per individual taxpayer or $200 for joint returns, and $5,000 or 10% of tax liability (whichever is less) for resident estates and trusts.

Defines "community foundation" requirements including 501(c)(3) status, support for broad charitable activities within a specific geographic area, minimum $100,000 endowment value within 18 months of establishment, public support, independent governance, and at least one part-time or full-time employee.

Specifies that community foundations with $1,000,000 or more in endowment value must undergo annual independent financial audits, while those with less must have annual reviews and audits every third year.

Requires the Department of Treasury to respond within 30 days to requests from entities seeking qualification determination and to report total credits claimed annually to legislative tax committees by July 1.