HB4992 Summary

• Creates a tax credit for charitable contributions to shelters for homeless persons, food kitchens, food banks, and similar entities providing overnight accommodation or meals to indigent persons in Michigan, effective for tax years beginning January 1, 2020 or later.

• Credit equals 50% of qualifying charitable contributions that are tax deductible under the Internal Revenue Code.

• Maximum credit for individual taxpayers is $100 per year or $200 for joint returns; for resident estates and trusts, the lesser of 10% of tax liability or $5,000.

• For resident estates and trusts, contributions used to calculate the credit cannot have been deducted from federal taxable income.

• Excess credits that exceed tax liability for the tax year are not refundable.