During a late-night session of the Michigan House of Representatives on Wednesday, two bills designed to restore the community foundation, food banks and homeless shelter charitable tax credits passed with strong bipartisan support. The vote tallies for HB 6433 and HB 6434 were 104-5 and 103-6, respectively. 

As CMF recently reported, HB 6433 and 6434 restore a vital set of tools for Michigan philanthropy that were eliminated in 2011. 

The bills provide Michiganders an income tax credit equal to 50 percent of the amount contributed, up to $100 for individual filers and up to $200 for joint filers, for food banks, homeless shelters and community foundations with assets of at least $1 million or more. 

The bills will now move to the Senate and could go for a vote as early as Tuesday, then on to Governor Rick Snyder's desk before the end of the lame duck session.

The Senate had previously taken committee action on SB 405.

From 1989 to 2011, Michigan enjoyed access to state tax credits to incentivize giving in Michigan. Research from the Dorothy A. Johnson Center for Philanthropy showed a significant decline in giving (at levels targeted for the tax credit) after the elimination of the tax credits.

The Johnson Center curated a digital series on tax policy that included deeper insights and analysis on tax policy and the charitable sector.

CMF will be monitoring any updates and developments from the Legislature and the governor as this important legislation is considered.