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Laura
Heintzelman
Executive Director
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Give Michigan Tax Credit
Michigan Tax Credit
What is the tax credit all about?
An exciting opportunity awaits you as a result of the Michigan Income Tax legislation.
Taxpayers can generate a total contribution to the Manistee County Community Foundation worth more than three times the actual out-of-pocket cost! This astonishing effect is created via the Michigan Tax Credit for Community Foundations.
Here's the way it works for both individuals and corporations:
The law permits a taxpayer to reduce Michigan Income Tax or Michigan Business Tax liability by a credit of 50% of the amount contributed to a community foundation, subject to a maximum credit of:
- $100 for an individual filing singly
(based on a $200 contribution)
- $200 for a married couple fling jointly
(for a $400 contribution)
- $5,000 or 10% of tax liability before claiming any credits, whichever is less, for a resident estate or trust
(for a $10,000 contribution)
- $5,000 or 5% of tax liability before claiming any credits, whichever is less, for taxpayers filing Michigan Business Tax returns
(for a $10,000 contribution)
Click here for examples of what a gift to the Manistee County Community Foundation might actually cost you under this provision of the Michigan tax code.
Please note: Community Foundation Tax Credit Is Not Available to Insurance Companies or Financial Institutions
According to Robin Ferriby, VP Philanthropic Services, Community Foundation for Southeast Michigan, who has worked with the State on several legislative issues:
“The rationale appears to be that they are not subject to the basic business tax. Instead, they are subject to a franchise tax or business tax in lieu of other taxes. As such, the legislation takes the position that they have already been given a special tax status and that they can’t also get the standard credits (including CF endowment credits).”
