MI HB4038

Establishes a tax credit for qualified taxpayers who donate edible agricultural products to hunger-relief charitable organizations located in Michigan, effective for tax years beginning January 1, 2019.

Credit amount equals 50% of the aggregate value of donated edible agricultural products, capped at $3,000 per tax year.

Qualified taxpayers must determine product value based on previous sale prices for comparable products, or fair market value using regional produce auction prices or USDA prices if no prior sale exists.

Hunger-relief charitable organizations must provide signed statements documenting donation details including product type, quantity, donor identification, and estimated value, with taxpayers attaching these forms to their annual tax returns.

Section 277 applies to individual taxpayers filing Schedule F, while Section 677 applies to business entities reporting farming income on federal Form 1120; excess credits cannot be refunded and only offset tax liability.