Bill Summary – FastDemocracy

HOUSE BILL NO. 6020
     October 15, 2024, Introduced by Reps. Martus, Hoskins, Byrnes, Paiz, Brenda Carter, Edwards,
       O'Neal, Neeley, McFall, McKinney, Rheingans and Coffia 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 206.847) by adding sections 279 and 679.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 279. (1) The department, in cooperation with the Michigan
 strategic fund, shall develop a Michigan community investment tax
 credit program in accordance with section 88u of the Michigan
 strategic fund act, 1984 PA 270, MCL 125.2088u. Subject to the
 limitations provided under this section, a taxpayer that makes a
    KAS                                                                             H03234'23 *
                                       2
 qualified donation in a qualified organization after December 31,
 2024 and before January 1, 2030 may claim a credit against the tax
 imposed by this part equal to 50% of the qualified donation made
 during the tax year to a qualified organization. A taxpayer shall
 not claim a credit under this section unless the qualified
 organization has issued a certificate to the taxpayer as required
 under section 88u(4) of the Michigan strategic fund act, 1984 PA
 270, MCL 125.2088u. The taxpayer shall attach the certificate to
 the annual return filed under this part on which a credit under
 this section is claimed.
       (2) For a taxpayer who is a member of a flow-through entity
 that qualifies for the credit under this section, that taxpayer may
 claim a credit against the member's tax liability under this part
 based on the member's distributive share of business income
 reported from that flow-through entity or an alternative method
 approved by the department.
       (3) The total amount of all credits allowed to be claimed
 under this section and section 679 shall not exceed $25,000,000.00
 per calendar year. Before June 1 of each year, the department shall
 provide the Michigan strategic fund with an annual report detailing
 the amount of credits claimed under this section and section 679
 for the immediately preceding tax year and further specify how much
 of that total amount is attributable to each qualified
 organization.
       (4) If the amount of the credit allowed under this section
 exceeds the tax liability of the taxpayer for the tax year, that
 portion of the credit that exceeds the tax liability of the
 taxpayer for the tax year must not be refunded but may be carried
 forward to offset tax liability under this part in subsequent tax
     KAS                                                      H03234'23 *
                                          3
 years for a period not to exceed 5 tax years or until used up,
 whichever occurs first.
       (5) As used in this section:
       (a) "Michigan strategic fund" means the Michigan strategic
 fund created in section 5 of the Michigan strategic fund act, 1984
 PA 270, MCL 125.2005.
       (b) "Qualified donation" and "qualified organization" mean
 those terms as defined under section 88u of the Michigan strategic
 fund act, 1984 PA 270, MCL 125.2088u.
       Sec. 679. (1) The department, in cooperation with the Michigan
 strategic fund, shall develop a Michigan community investment tax
 credit program in accordance with section 88u of the Michigan
 strategic fund act, 1984 PA 270, MCL 125.2088u. Subject to the
 limitations provided under this section, a taxpayer that makes a
 qualified donation in a qualified organization after December 31,
 2024 and before January 1, 2030 may claim a credit against the tax
 imposed by this part equal to 50% of the qualified donation made
 during the tax year to a qualified organization. A taxpayer shall
 not claim a credit under this section unless the qualified
 organization has issued a certificate to the taxpayer as required
 under section 88u(4) of the Michigan strategic fund act, 1984 PA
 270, MCL 125.2088u. The taxpayer shall attach the certificate to
 the annual return filed under this part on which a credit under
 this section is claimed.
       (2) The total amount of all credits allowed to be claimed
 under this section and section 279 shall not exceed $25,000,000.00
 per calendar year. Before June 1 of each year, the department shall
 provide the Michigan strategic fund with an annual report detailing
 the amount of credits claimed under this section and section 279
     KAS                                                      H03234'23 *
                                          4
 for the immediately preceding tax year and further specify how much
 of that total amount is attributable to each qualified
 organization.
       (3) If the amount of the credit allowed under this section
 exceeds the tax liability of the taxpayer for the tax year, that
 portion of the credit that exceeds the tax liability of the
 taxpayer for the tax year must not be refunded but may be carried
 forward to offset tax liability under this part in subsequent tax
 years for a period not to exceed 5 tax years or until used up,
 whichever occurs first.
       (4) As used in this section:
       (a) "Michigan strategic fund" means the Michigan strategic
 fund created in section 5 of the Michigan strategic fund act, 1984
 PA 270, MCL 125.2005.
       (b) "Qualified donation" and "qualified organization" mean
 those terms as defined under section 88u of the Michigan strategic
 fund act, 1984 PA 270, MCL 125.2088u.
       Enacting section 1. This amendatory act does not take effect
 unless Senate Bill No.____ or House Bill No. 6021 (request no.
 03407'23 *) of the 102nd Legislature is enacted into law.
     KAS                          Final Page                  H03234'23 *
Statutes affected: 
House Introduced Bill: 206.1, 206.847