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HB 6021

Economic development: Michigan strategic fund; community investment tax credit program; create. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 88u.

2023-2024 Regular Session Introduced by Erin Byrnes and 12 co-sponsors

Michigan would create a state-administered Community Investment Tax Credit program to fund place-based nonprofit projects via donations and tax credits.

bill electronically reproduced 10/15/2024
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Bill Summary · HB 6021

Summary — HB 6021 (Michigan): Michigan strategic fund; community investment tax credit program

Status (most recent): Introduced; reported favorably out of Ways & Means Committee (3/27/2025); later referred to Budget Committee. The bill was subsequently indefinitely postponed/withdrawn and listed as dying in the Budget Committee (May–June 2025). The bill was not enacted.

Purpose

Create a state-administered Community Investment Tax Credit (CITC) program to encourage private donations to place‑based nonprofit community organizations that implement neighborhood-focused development strategies serving distressed areas and low‑income populations.

Key provisions

  • Adds section 88u to the Michigan Strategic Fund Act (1984 PA 270; MCL 125.2001–125.2094) to establish the Michigan Community Investment Tax Credit program.
  • The Michigan Strategic Fund (the fund), in cooperation with the Department of Treasury, must develop and operate the program (may use MEDC employees/agents).
  • The fund must publish a detailed application, approval, and compliance process and a list of approved place‑based nonprofit organizations on its website.
  • Place‑based nonprofit community organizations apply for approval of a community investment plan and for an allocation of tax credits to support implementation of that plan.
  • The fund’s board must approve or deny a completed application within 90 days.
  • If approved, the board issues an approval letter and may allocate CITCs to the qualified organization for up to 3 consecutive tax years.

Program limits and allocation rules

  • Aggregate cap: board shall not allocate more than $25,000,000 in community investment tax credits in any single tax year.
  • Per-organization allocations per tax year: minimum $50,000; maximum $150,000.
  • Subsequent allocations to the same organization are permitted only if the board finds satisfactory progress on prior allocations.
  • Donors must contribute at least $500 to claim the credit.

Donor certification and reporting

  • Qualified organizations must notify donors that donations are nonrefundable and issue a certificate for each donation (showing date, org name, donation amount, and credit amount).
  • Copies of each certificate must be sent to the Michigan Strategic Fund and the Department of Treasury.

Definitions (selected)

  • Place‑based nonprofit community organization: a 501(c)(3) nonprofit under state nonprofit law whose primary efforts target one or more specific neighborhoods/communities with an economically disadvantaged constituency, whose constituency participates in governance, and that is not a financial institution.
  • Qualified donation: cash or cash‑equivalent gift to support the approved community investment plan.
  • Community investment tax credit: the tax credit referenced under sections 206.279 and 206.679 of the Income Tax Act of 1967 (used to certify donors to claim the credit).

Who is affected

  • Beneficiaries: residents of distressed neighborhoods/communities and low‑income populations served by approved plans.
  • Direct participants: place‑based 501(c)(3) nonprofits meeting the bill’s criteria.
  • Donors: individuals and entities making qualified donations (minimum $500) seeking to claim state tax credits.
  • State agencies: Michigan Strategic Fund and Department of Treasury (administration, certification, reporting).

Effective condition

The bill includes an enactment clause stating it does not take effect unless companion legislation (SB ___ or HB 6020 of the 102nd Legislature) is also enacted.

Potential fiscal and programmatic impacts

  • The statutory cap ($25 million/year) bounds the maximum annual tax expenditure under this program; actual fiscal impact would depend on the number of approved organizations, donor participation, and related statutory tax-credit valuation rules (via Income Tax Act sections cited).
  • Administrative workload for the fund and Treasury: application processing, certification, monitoring, and reporting.

Note: This summary is based on the introduced bill text (October 15, 2024 version) and committee/legislative action history through mid‑2025.

Compiled from official sources — confirm details with the bill’s official record.

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