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HB 4248

Individual income tax: credit; credit for donations to endowment fund of community foundations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 261. TIE BAR WITH: HB 4247'25

2025-2026 Regular Session Introduced by Kara Hope and 3 co-sponsors

Michigan bill creates income tax credit for donations to community foundation endowments, reducing donor costs to incentivize charitable giving while reducing state tax revenue.

bill electronically reproduced 03/18/2025
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Bill Summary · HB 4248

Legislative bill overview

HB 4248 would create a new Michigan state income tax credit for individuals who donate money to endowment funds of community foundations. The bill amends the Michigan income tax code and is tied to companion legislation (HB 4247), suggesting coordinated tax policy changes designed to incentivize charitable giving to community foundations.

Why is this important

Community foundations distribute charitable funds to local causes, and tax credits directly reduce the cost of giving by returning money to donors through their tax returns. This could increase philanthropic support for local communities, though it also reduces state tax revenue and primarily benefits donors in higher tax brackets who can afford charitable donations.

Potential points of contention

  • Revenue impact: The bill reduces state income tax collections by offering credits, which could pressure the state budget unless offset by increased donations and economic activity
  • Equity concerns: Tax credits disproportionately benefit higher-income earners who donate and have sufficient tax liability to use the credit, potentially widening wealth-based philanthropic influence
  • Scope and limits: The bill language doesn't specify credit percentage, income limits, or donation caps, raising questions about cost control and whether safeguards exist to prevent abuse or excessive revenue loss

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

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