New Michigan tax laws enacted by GOP lege could hurt charities
Among the many changes to Michigan tax laws made by the Republican-controlled legislature and Gov. Rick Snyder is a provision that could hurt charities in the state by eliminating a state tax credit for contributions
Jul 31, 2020163.4K Shares2.1M Views
Among the many changes to Michigan tax laws made by the Republican-controlled legislature and Gov. Rick Snyder is a provision that could hurt charities in the state by eliminating a state tax credit for contributions.
Rosemary Parker at the Kalamazoo Gazette has the details:
“„Individual taxpayers will take the brunt of the changes, of course, but food banks, public universities, foundations and other nonprofits could suffer when the tax credit on donations disappears.
“„“In Michigan it has been a sweet deal, a dollar-for-dollar credit on the Michigan return,” Powers explained.
Currently, for a married couple filing jointly, a $400 gift to an eligible charity gets a Michigan tax credit of $200. Add the federal deduction, and the actual cost of that $400 gift is just $76.
“„“While I couldn’t tell you how many take the credit, it is indicative that many plan to by the amount of their gift,” said Theresa Bray, executive director of the Allegan County Community Foundation.
Under the new law, the cost of that $400 contribution will now be $276. The tax changes will decrease business taxes by $1.6 billion next year, making up for it by increasing the amount paid as personal income tax.
Rhyley Carney
Reviewer
Latest Articles
Popular Articles