H.B. 4091: COMMITTEE SUMMARY - SBT CREDIT: FOUNDATIONS/SHELTERS

House Bill 4091 (as passed by the House)

Sponsor: Representative Candace Curtis

House Committee: Tax Policy

Senate Committee: Finance

Date Completed: 9-30-97

CONTENT

The bill would amend the Single Business Tax (SBT) Act to extend indefinitely the community foundation credit (which allows a taxpayer to claim a partial SBT credit for donations to the endowment fund of a community foundation) and the homeless shelter/food bank credit (which allows a partial credit for a donation to a shelter for the homeless, a food bank, a food kitchen, or other entity whose primary purpose is to provide overnight accommodations or food to indigent persons). The bill would delete current language that provides for the expiration of the credits after the 1997 tax year.

The SBT Act allows a taxpayer to claim the lesser of $5,000 or an amount that does not exceed 5% of the taxpayer's tax liability, for both the community foundation credit and the homeless shelter/food bank credit. A taxpayer cannot claim the credits if the taxpayer claims a community foundation or homeless shelter/food bank credit under the Income Tax Act.

MCL 208.38c - Legislative Analyst: G. Towne

FISCAL IMPACT

This bill would reduce single business tax revenue by an estimated $0.6 million in FY 1997-98.

- Fiscal Analyst: J. Wortley

S9798\S4091SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.