This bill amends the Income Tax Act of 1967 by introducing a charitable food tax credit program aimed at enhancing food security in Michigan. The program will support emergency food providers and regional food banks through innovative projects that provide food to those in need, such as pantries, soup kitchens, and shelters. The Department of Treasury is tasked with establishing the program, which includes a certification process for organizations wishing to participate. Qualified taxpayers who donate food to certified organizations can claim a tax credit equal to 65% of the fair market value of the donated food, starting from tax years beginning on or after January 1, 2026.

Additionally, the bill outlines specific requirements for both qualified organizations and taxpayers. Qualified organizations must demonstrate a commitment to reducing food insecurity and maintaining ongoing programs to attract donations. Taxpayers eligible for the credit include those engaged in farming, food processing, manufacturing, or distribution. The credit is capped at 50% of the taxpayer's tax liability or $10,000, whichever is less, and any excess credit beyond the tax liability will be refunded. The bill also includes definitions for key terms related to the program, ensuring clarity in its implementation.

Statutes affected:
House Introduced Bill: 206.1, 206.847