May 09, 2023, Introduced by Reps. Martus, Snyder, Dievendorf, Glanville, Farhat, Rogers, McFall, O'Neal, Neeley, Skaggs, Brenda Carter and Hoskins and referred to the Committee on Tax Policy.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.847) by adding section 260.

The people of the state of michigan enact:

Sec. 260. (1) For tax years beginning on and after January 1, 2023 and subject to the applicable limitations in this section, a taxpayer may claim a credit against the tax imposed by this part in an amount equal to 50% of the sum of the cash amount and, if food items are contributed in conjunction with a program in which a vendor makes a matching contribution of similar items, the value of those food items, the taxpayer contributes during the tax year to a shelter for homeless persons, food kitchen, food bank, or other entity located in this state, the primary purpose of which is to provide overnight accommodation, food, or meals to persons who are indigent if a contribution to that entity is tax deductible under the internal revenue code. For a taxpayer other than a resident estate or trust, the maximum credit allowed under this subsection shall not exceed $100.00, or $200.00 for a joint return. For a resident estate or trust, the maximum credit allowed under this subsection shall not exceed 10% of the taxpayer's tax liability for the tax year before claiming any credits allowed by this part or $5,000.00, whichever is less.

(2) For a resident estate or trust, the amount used to calculate the credit under this section shall not have been deducted in arriving at federal taxable income.

(3) If the amount of the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, the portion that exceeds the tax liability shall not be refunded.

(4) On or before July 1 of each year, the department shall report to the house committee on tax policy and the senate finance committee the total amount of tax credits claimed under this section for the immediately preceding tax year.

(5) An entity may request that the department determine if a contribution to that entity qualifies for the credit under this section. The department shall make a determination and respond to a request no later than 30 days after the department receives the request.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 4531 (request no. 01634'23) of the 102nd Legislature is enacted into law.