1 MICHIGAN 99TH LEGISLATURE

2 First Regular Session

3
4 A BILL FOR AN ACT
5 CONCERNING A NON-REFUNDABLE UNIVERSAL CHARITABLE CREDIT AGAINST STATE
6 INCOME TAX LIABILITY, AND IN CONNECTION THEREWITH, ENACTING THE
7 MICHIGAN UNIVERSAL CHARITABLE CREDIT.

8 _______________________________________________________________________________________________________

9
10 THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

11 SECTION 1. Short title. The short title of this act is the Michigan Universal Charitable Credit.

12 SECTION 2. In Michigan Compiled Laws, Chapter 206 Income Tax Act of 1967, Act 281 of 1967
13 Income Tax Act of 1967, Part 1, Chapter 9, add section 206.533 as follows:

14 206.533. Michigan Universal Charitable Credit.

15 (1) A credit is allowed against the taxes imposed by this title for voluntary cash
16 contributions by the taxpayer or on the taxpayer's behalf during the taxable year to
17 qualified charitable organizations not to exceed:

18 a. Five hundred dollars in any taxable year for a taxpayer who files as: single
19 individual, head of household or married filing separately.

20 b. One thousand dollars in any taxable year for a married couple filing a joint return.

21 (2) The credit allowed by this section is in lieu of a deduction pursuant to section 170 of
22 the internal revenue code and taken for state tax purposes.

23 (3) Taxpayers taking a credit authorized by this section shall provide the names of the
24 qualified charitable organizations and the amount of the contributions to the
25 department of revenue on forms provided by the department.

26 (4) The department of revenue shall compile and make available to the public a list of

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1 qualified charitable organizations.

2 (5) Taxpayers choosing to make voluntary cash contributions through an umbrella

3 charitable organization that collects donations on behalf of member charities shall
4 designate that the donations be directed only to member charitable organizations that
5 would qualify under this section on a stand-alone basis.

6 (6) Carryover.

7 (a) The allowable credit shall be applied against the qualified tax liability for the
8 year in which it is claimed, but shall not exceed the total liability of the taxpayer
9 for that year.

10 (b) A credit granted under this article shall not be carried back or refunded.

11 (7) Notwithstanding any other provision of law, the department of revenue shall settle,
12 assess or determine the tax of an applicant under this subsection within 90 days of the
13 filing of all required final returns or reports in accordance with the Michigan Compiled
14 Laws Service, Chapter 206 Income Tax Act of 1967, Act 281 of 1967 Income Tax Act of
15 1967, Part 1, Chapter 9.

16 (8) "Qualified charitable organizations" means charitable organizations that are

17 "Qualified charitable organizations" means charitable organizations that are:

18 (a) exempt from federal income taxation under section 501(c)(3) of the internal
19 revenue code,

20 (b) incorporated in the State of Michigan,

21 (c) in good standing with the Michigan Department of Revenue, and

22 (d) not under suspension per section 501(p) of the internal revenue code, or
23 revocation per the Internal Revenue Bulletin at the time of the contribution.

24 (9) Retroactivity. This act applies retroactively to taxable years beginning from and
25 after December 31, 2016.

26

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