This 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 lesser of 10% of their tax liability or $5,000. To qualify for the credit, taxpayers must obtain a written acknowledgment from the receiving entity, which must include details about the contribution and attestations regarding the entity's purpose and compliance with tax deductibility and civil rights laws.

Additionally, the bill outlines that if the credit exceeds the taxpayer's tax liability, the excess will not be refunded. The Department of Treasury is required to report the total amount of credits claimed under this section annually to relevant legislative committees. The bill also defines key terms such as "federal poverty level" and "persons who are indigent" to clarify eligibility criteria 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