HOUSE BILL No. 4708


     April 29, 1997, Introduced by Reps. Horton, Cropsey, Middaugh, Jansen, Sikkema, McManus, Lowe, Goschka, Kaza, McBryde, Whyman, Jaye, Richner, Byl, Dalman, McNutt, Gernaat, Raczkowski, Birkholz, Jellema, Dobb, Bodem, Green and Voorhees 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 206.532) by adding section 266.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 266.  (1) FOR THE 1997 TAX YEAR AND EACH TAX YEAR AFTER

 2    1997, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

 3    THIS ACT EQUAL TO THE CASH DONATIONS MADE BY THE TAXPAYER IN THE

 4    TAX YEAR TO QUALIFIED CHARITIES, NOT TO EXCEED $500.00 FOR A

 5    SINGLE RETURN OR $1,000.00 FOR A JOINT RETURN.

 6         (2) TO CLAIM A CREDIT UNDER THIS SECTION, A TAXPAYER SHALL

 7    LIST EACH OF THE QUALIFIED CHARITIES TO WHICH A CONTRIBUTION IS

 8    MADE AND THE AMOUNT OF THE CONTRIBUTION THAT IS USED TO CALCULATE

 9    THE CREDIT FOR THE TAX YEAR AND ATTACH THE LIST TO THE TAXPAYER'S

10    TAX RETURN.




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 1         (3) A TAXPAYER SHALL NOT INCLUDE IN THE CALCULATION OF THE

 2    CREDIT UNDER THIS SECTION ANY AMOUNT USED TO CALCULATE ANY OTHER

 3    CREDIT OR DEDUCTION UNDER THIS ACT.

 4         (4) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

 5    LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE

 6    CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.

 7         (5) AN ORGANIZATION MAY REQUEST THAT THE DEPARTMENT DETER-

 8    MINE IF A CONTRIBUTION TO THAT ORGANIZATION QUALIFIES FOR THE

 9    CREDIT UNDER THIS SECTION.  THE DEPARTMENT SHALL MAKE THE DETER-

10    MINATION AND RESPOND TO A REQUEST NOT LATER THAN 30 DAYS AFTER

11    THE DEPARTMENT RECEIVES THE REQUEST.

12         (6) THE DEPARTMENT SHALL CONDUCT A STUDY TO DETERMINE

13    WHETHER THE QUALIFIED CHARITIES TO WHICH CONTRIBUTIONS WERE MADE

14    AND USED TO CALCULATE A CREDIT UNDER THIS SECTION IN THE 1997 TAX

15    YEAR MEET THE GOALS DESCRIBED IN SUBSECTION (7)(B) AND DELIVER A

16    REPORT ON THE RESULTS OF THAT STUDY TO THE LEGISLATURE NOT LATER

17    THAN JULY 1, 1998.

18         (7) AS USED IN THIS SECTION, "QUALIFIED CHARITIES" MEANS

19    ORGANIZATIONS THAT MEET BOTH OF THE FOLLOWING CRITERIA:

20         (A) ARE DESCRIBED IN SECTION 501(c)(3) OF THE INTERNAL REVE-

21    NUE CODE AND ARE EXEMPT FROM TAXATION under section 501(a) OF THE

22    INTERNAL REVENUE CODE.

23         (B) DISTRIBUTE AT LEAST 85% OF THE FUNDS COLLECTED, AS

24    DETERMINED BY THE DEPARTMENT, IN 1 OF THE FOLLOWING WAYS:

25         (i) TO PROVIDE SERVICES TO INDIVIDUALS AND FAMILIES DESIGNED

26    TO MEET THE GOAL OF PREVENTING AND ALLEVIATING POVERTY FOR THOSE

27    INDIVIDUALS AND FAMILIES.



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 1         (ii) TO OTHER ORGANIZATIONS THE PREDOMINANT ACTIVITY OF

 2    WHICH IS TO PROVIDE SERVICES TO INDIVIDUALS AND FAMILIES THAT ARE

 3    DESIGNED TO MEET THE GOAL OF PREVENTING OR ALLEVIATING POVERTY

 4    FOR THOSE INDIVIDUALS AND FAMILIES.
















































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