WeVote
Log In

Bill

Bill

SB 127

Individual income tax: credit; credit for donation to endowment fund of community foundation; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 261.

2023-2024 Regular Session Introduced by Rosemary Bayer and 13 co-sponsors

Michigan allows individual state income tax credits for donations to community foundation endowments, reducing state tax revenue while incentivizing long-term charitable giving.

laid over one day under the rules
#businesses:charitableorganizations #individualincometax:credit
0
WeVote Research Nonpartisan
Bill Summary · SB 127

Legislative bill overview

SB 127 creates a Michigan state income tax credit for individuals who donate to endowment funds of community foundations. The bill amends Michigan's tax code to allow taxpayers to claim a credit against their state income tax liability based on qualifying charitable donations to these specific charitable vehicles.

Why is this important

This policy affects state tax revenue while potentially directing philanthropic dollars toward community foundations, which typically fund local charitable initiatives. The tax incentive could increase charitable giving to these organizations, though it also reduces state general fund revenue that might otherwise fund public services.

Potential points of contention

  • Revenue impact uncertainty: The fiscal cost to the state depends on donation behavior changes and credit utilization rates, which are difficult to predict accurately
  • Equity concerns: Tax credits primarily benefit higher-income individuals who itemize charitable donations and have taxable income to offset, potentially concentrating benefits among wealthier residents
  • Endowment fund specificity: Limiting the credit to endowment funds (rather than immediate charitable spending) may delay community benefit, and the rationale for this restriction versus other charitable giving deserves scrutiny

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

Sign in to ask a question.