April 14, 2005, Introduced by Senators BISHOP, CASSIS and KUIPERS and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 260 (MCL 206.260), as amended by 1996 PA 484.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 260. (1) A taxpayer may credit against the tax imposed by
this act for the tax year, an amount, subject to the applicable
limitations provided by this section, equal to 50% of the aggregate
amount of charitable contributions made by the taxpayer during the
tax year to any of the following:
(a) This state pursuant to the Faxon-McNamee art in public
places
act, Act No. 105 of the Public Acts of 1980, being sections
18.71
to 18.81 of the Michigan Compiled Laws 1980 PA 105, MCL
18.71 to 18.81, of an artwork created by the taxpayer, for display
in a public place.
(b)
The state art in public places fund created pursuant to
Act
No. 105 of the Public Acts of 1980 the Faxon-McNamee art in
public places act, 1980 PA 105, MCL 18.71 to 18.81.
(c) A municipality in this state of an artwork created by the
personal effort of the taxpayer for display in a public place.
(d) Either a municipality of this state or a nonprofit
corporation affiliated with both a municipality and an art
institute located in the municipality, of money or artwork, whether
or not created by the personal effort of the taxpayer, if for the
purpose of benefiting an art institute located in that
municipality.
(e) A public library.
(f) A public broadcast station as defined by section 397 of
subpart
d E of
part IV of title III of the
communications act of
1934,
47 U.S.C. USC
397, that is not affiliated with an
institution of higher education and that is located within this
state.
(g) An institution of higher learning located within this
state.
(h) The Michigan colleges foundation.
(i) The state museum.
(j) The department of state for the purpose of preservation of
the state archives.
(k) A nonprofit corporation, fund, foundation, trust, or
association organized and operated exclusively for the benefit of
institutions of higher learning located within this state. A tax
credit for a contribution described in this subdivision is
permitted only if the donee corporation, fund, foundation, trust,
or association is controlled or approved and reviewed by the
governing board of the institution benefiting from the charitable
contribution. The nonprofit corporation, fund, foundation, trust,
or association shall provide copies of its annual independently
audited financial statements to the auditor general of this state
and chairpersons of the senate and house appropriations committees.
(l) An educational facility or organization. A contribution to
an entity listed in section 261 shall not be used to calculate a
credit under this subdivision.
(2) For a taxpayer other than a resident estate or trust, the
amount allowable as a credit under this section for a tax year
shall not exceed $100.00, or for a husband and wife filing a joint
return as provided in section 311, $200.00.
(3) For a resident estate or trust, the amount allowable as a
credit under this section for a tax year shall not exceed 10% of
the tax liability for the year as determined without regard to this
section or $5,000.00, whichever is less and shall not have been
deducted in arriving at federal taxable income.
(4) As used in this section:
(a) "Institution of higher learning" means only an educational
institution located within this state that meets all of the
following requirements:
(i) It maintains a regular faculty and curriculum and has a
regularly enrolled body of students in attendance at the place
where its educational activities are carried on.
(ii) It regularly offers education above the twelfth grade.
(iii) It awards associate, bachelors, masters, or doctoral
degrees or a combination of those degrees or higher education
credits acceptable for those degrees granted by other institutions
of higher learning.
(iv) It is recognized by the state board of education as an
institution of higher learning and appears as an institution of
higher learning in the annual publication of the department of
education entitled "The Directory of Institutions of Higher
Education".
(b) "Public library" means that term as defined in section 2
of
the state aid to public libraries act, Act No. 89 of the Public
Acts
of 1977, being section 397.552 of the Michigan Compiled Laws
1977 PA 89, MCL 397.552.
(c) "Contributions made by the taxpayer" means, but is not
limited to, the fair market value of artwork created by the
personal effort of the taxpayer that is donated to and accepted as
a donation by a qualified organization. The fair market value of a
piece of artwork shall be determined at the time of the donation by
independent appraisal.
(d) "Artwork" means an original, visual creation of quality
executed in any size or shape, in any media, using any kind or type
of materials.
(e) "Educational facility or organization" means either of the
following:
(i) An educational foundation.
(ii) A continuing education, a community education, or an adult
education program operated by a school district or a public school
academy.
(f) "Education foundation" means an organization that applies
for certification on or before April 1 of the tax year for which
the taxpayer is claiming the credit that annually submits
documentation to the department that demonstrates continued
compliance with this subdivision, and that the department certifies
for that tax year as meeting all of the following requirements:
(i) Qualifies for exemption from federal income taxation under
section 501(c)(3) of the internal revenue code.
(ii) Maintains an ongoing program to attract new funds by
seeking gifts and bequests from a wide range of potential donors in
the community or area served.
(iii) All funds, gifts, and bequests are exclusively dedicated
to a school district or public school academy or a foundation
described in section 509(a)(1) or 509(a)(3) of the internal revenue
code that is located in the community or area served and that is
located in this state.
(iv) Is publicly supported as defined by the regulations of the
United States department of treasury, 26 CFR 1.170A-9(e)(10).
(v) Meets the requirements for treatment as a single entity
contained in the regulations of the United States department of
treasury, 26 CFR 1.170A-9(e)(11).
(vi) Is incorporated or established as a trust at least 6
months before the beginning of the tax year for which the credit is
claimed.
(vii) Has an independent governing body representing the
general public's interest and that is not appointed by a single
outside entity.
(viii) Is subject to a program review each year and an
independent financial audit every 3 years and provides copies of
the reviews and audits to the department not more than 3 months
after the review or audit is completed.
(g) "School district" means a school district, local act
school district, or intermediate school district as those terms are
defined in the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
(5) The sum of the credits allowed by section 257 and this
section shall not exceed the tax liability of the taxpayer.