HB 4247 would add a new income tax credit for Michigan taxpayers who make qualifying donations to certain charitable organizations that provide overnight accommodation, food, or meals to people who are indigent. Beginning with tax years starting on or after January 1, 2025, a taxpayer could claim a credit equal to 50% of eligible cash donations, and in limited cases the value of donated food items made through a matching vendor program. The bill limits the credit to $100 for most individual taxpayers, $200 for joint filers, and for resident estates or trusts to the lesser of 10% of pre-credit tax liability or $5,000.
To qualify, the donation must be made to a Michigan-located shelter, food kitchen, food bank, or similar entity whose primary purpose is to serve indigent persons, and the contribution must be deductible under section 170 of the Internal Revenue Code. Taxpayers must obtain written acknowledgment from the recipient organization, and that acknowledgment must include the date and amount of the contribution, an attestation about the organization’s primary purpose, confirmation of federal deductibility, and confirmation that the organization complies with the Elliott-Larsen Civil Rights Act. The bill also prohibits refunding any credit amount that exceeds the taxpayer’s liability and requires the Department of Treasury to report annually on the total credits claimed.
The bill would amend the Michigan Income Tax Act by creating a new targeted charitable contribution credit. It would affect individual taxpayers and resident estates or trusts, while also imposing documentation and eligibility requirements on qualifying nonprofit organizations. The bill defines key terms such as “persons who are indigent” as households below 140% of the federal poverty level and ties the credit to organizations whose primary purpose is providing food or shelter.
The available context suggests the bill is intended as a charitable incentive and appears generally supportive of food and shelter assistance organizations. No committee transcript or vote record is provided, so there is no direct evidence of debate or opposition in the materials supplied. The tie-bar to HB 4248 indicates the bill is part of a paired legislative package and would not take effect unless the companion measure is enacted.
Notable points of potential contention are the relatively small credit caps, the requirement that recipient organizations certify civil-rights compliance and federal deductibility, and the fact that the credit is nonrefundable. Another possible issue is the bill’s narrow scope: it benefits donations to specific types of organizations serving indigent persons rather than charitable giving more broadly.
Impact
HB 4247 would add section 260 to the Michigan Income Tax Act to authorize a new nonrefundable income tax credit for qualifying charitable donations. It would create a new tax preference for donations to shelters, food banks, food kitchens, and similar Michigan entities serving indigent persons, while also requiring written substantiation and annual reporting by the Department of Treasury. The bill would affect individual income taxpayers, joint filers, and resident estates or trusts, and it would indirectly affect eligible nonprofit organizations by requiring them to provide specific acknowledgments and attestations.
Sentiment
The bill’s apparent purpose is to encourage donations to organizations that provide food and shelter to low-income and homeless individuals, so the overall policy direction is supportive of charitable and anti-poverty efforts. Because no committee testimony or recorded votes are included, there is no documented public debate in the provided materials. The tie-bar arrangement suggests the bill is part of a coordinated package rather than a standalone proposal, which typically indicates a deliberate legislative strategy and some level of support among sponsors.
Contention
The main points of contention are likely to be the size and structure of the credit, since the maximum benefit is modest and the credit is nonrefundable, limiting its value to taxpayers with sufficient liability. Some may also question the administrative burden created by the written acknowledgment requirements and the need for organizations to attest to civil-rights compliance and federal deductibility. In addition, the bill’s narrow eligibility criteria may be seen as either appropriately targeted or too restrictive, depending on whether the goal is to incentivize specific anti-hunger and shelter donations or broader charitable giving.