Michigan Drops State Tax Credits for Some Donations

Contributions to Michigan food banks, homeless shelters, and community foundations will no longer entitle donors to state tax credits, says the Jackson Citizen Patriot.

The state’s new budget eliminates the credit, which allows individuals to get up to $100 in credits and married couples up to $200 for a year. About 269,000 Michigan taxpayers claimed the credits in 2009.

Kyle Caldwell, executive director of the Michigan Nonprofit Association, said he was disappointed that state leaders had “picked this particular route” to make budget sacrifices and predicted a decline in giving.

But Michael LaFaive, an analyst at the Mackinac Center for Public Policy, said he did not believe the tax break was a key motivation for shelter, food-bank, and foundation donors. “I don’t see it having a major impact on giving in the state,” he said.

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