MI SB0127

Establishes a tax credit for taxpayers who contribute to endowment funds of community foundations, effective for tax years beginning January 1, 2024.

Allows individual taxpayers a credit equal to 50% of contributions, capped at $100 per return or $200 for joint returns; resident estates and trusts limited to the lesser of 10% of tax liability or $5,000.

Requires taxpayers to obtain a gift acknowledgment from the community foundation and prohibits resident estates and trusts from claiming the credit on amounts already deducted from federal taxable income.

Defines "community foundation" as organizations certified by the department that meet Michigan Community Foundation Act requirements and maintain at least $1,000,000 in assets; organizations must apply for certification by May 15 of the applicable tax year.

Requires the department to report annually to the House Committee on Tax Policy and Senate Finance Committee the total amount of credits claimed in the preceding tax year.