Several CMF members, CMF and partner organizations have worked to support bipartisan legislation that would restore the Michigan Charitable Tax Credit.

Lawmakers have passed the FY25 budget totaling $82.5 billion. The budget did not include the $3.3 million needed to restore Michigan’s Charitable Tax Credit. CMF continues to advocate that lawmakers work to incentivize charitable giving, focusing on working families and supporting nonprofits working alongside communities.

Reinstating Michigan’s Charitable Tax Credit unlocks opportunities by incentivizing families of all income levels to give charitable donations to endowed funds across the state and, in turn, strengthen our nonprofits.

Before it was eliminated as part of tax reform in 2011, the tax credit incentivized families of all income levels to donate to nonprofits, helping those organizations effectively respond to community needs. By restoring this incentive, we can encourage more local giving, help create a culture of giving among first-time donors and empower our local nonprofits to do even more of the vital work they do to support strong and prosperous communities across the state.

Last month, Illinois enacted the Illinois Gives Tax Credit Act. This act incentivizes up to $100 million in new charitable giving over the next five years by authorizing a 25% state income tax credit for charitable donations to eligible permanent endowments. This legislation further underscores the value of giving incentives and it’s time for Michigan to restore our charitable tax credit.

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Learn more about how you can support restoring Michigan’s Charitable Tax Credit.

Stay connected with the latest updates on the Michigan Charitable Tax Credit and more through CMF’s Policy Online Community.