The proposed bill amends the Income Tax Act of 1967 by adding a new section, Sec. 260, which allows taxpayers to claim a tax credit for contributions made to shelters for homeless persons, food kitchens, food banks, or similar entities. The credit is set at 50% of the total cash and food item contributions made during the tax year, with specific limits: a maximum of $100 for individual taxpayers or $200 for joint returns, and for resident estates or trusts, the credit cannot exceed 10% of their tax liability or $5,000, whichever is less. To qualify for the credit, taxpayers must obtain a written acknowledgment from the receiving entity detailing the contribution and its compliance with certain regulations.

Additionally, the bill outlines requirements for the written acknowledgment, including the date and amount of the contribution, the entity's purpose, and its compliance with the Elliott-Larsen Civil Rights Act. It specifies that any credit exceeding the taxpayer's liability cannot be refunded and mandates an annual report to legislative committees on the total credits claimed. The bill also defines key terms such as "federal poverty level" and "persons who are indigent" to clarify eligibility for the credit. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 206.1, 206.847