The bill amends the Income Tax Act of 1967 by updating Section 435, which allows individuals to designate contributions from their tax refunds to various funds. The new language specifies that individuals can now designate contributions of $5.00, $10.00, or more from their refunds to several funds, including the children's trust fund, military family relief fund, animal welfare fund, United Way fund, and the newly added homeless advocacy fund for tax years starting in 2026. The bill also removes previous designations for the Michigan junior achievement fund, fostering futures scholarship trust fund, Lions of Michigan Foundation fund, Michigan World War II Legacy Memorial fund, and Kiwanis fund, which were applicable for tax years after 2016 and 2018.

Additionally, the bill outlines the responsibilities of the department in establishing a contributions schedule and revising the state individual income tax return form to include a separate line for total contributions. It mandates that contributions must be appropriated from the general fund to the respective funds designated by taxpayers, ensuring that these funds are used solely for their intended purposes. The bill also includes provisions for the distribution of appropriated funds and criteria for legislative approval of additional contribution designations. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 206.435