S.B. 124 Summary

• Creates a refundable income tax credit for taxpayers who make qualifying donations of cash, real or tangible personal property, or services to townships.

• Credit amount equals the lesser of $5,000 or the total qualifying donations made during the taxable year to one or more townships.

• Requires townships to approve donations through a process where the donor presents a plan and receives approval from a majority of the township board of trustees.

• Taxpayers must obtain a receipt from the township itemizing donations, their values, and dates; the tax commissioner may request supporting documentation including fair market value assessments.

• Applies to taxable years beginning on or after January 1, 2021, and allows excess credits to be refunded if they exceed tax liability.