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HB 4754

Individual income tax: credit; credit for cash and food donations to certain nonprofit organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 260 & 679.

2025-2026 Regular Session Introduced by Tyrone Carter and 3 co-sponsors

Michigan bill creates income tax credit for donations to qualifying nonprofits; aims to boost charitable giving but lacks budget impact details and eligibility criteria.

bill electronically reproduced 07/29/2025
#corporateincometax:credits #individualincometax:credit
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Bill Summary · HB 4754

Legislative bill overview

HB 4754 would amend Michigan's income tax code to create a new tax credit for individuals who make cash or food donations to qualifying nonprofit organizations. The credit would be added to the Michigan Tax Code (1967 PA 281) through two new sections (260 and 679).

Why is this important

Tax credits for charitable giving can incentivize donations to nonprofits that serve food-insecure populations and provide social services, potentially increasing funding for these organizations. However, the bill's actual fiscal impact depends on the credit's size, which nonprofits qualify, and how many taxpayers would claim it—details not specified in the bill text summary provided.

Potential points of contention

  • Cost to state budget: The bill does not specify the credit amount or cap, raising questions about revenue loss and whether the state can afford it without offsetting cuts or revenue increases
  • Definition of "qualifying" nonprofits: Criteria for which organizations receive donations that generate credits are not detailed, potentially creating disputes or allowing selective benefit allocation
  • Equity concerns: Tax credits primarily benefit taxpayers with sufficient income tax liability to use them; lower-income donors may see minimal benefit, potentially making this a regressive subsidy

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

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