Legislation that I introduced would restore the income tax credit for donations made to food banks and other community foundations. Senate Bill (SB) 405 would allow taxpayers to claim a nonrefundable income tax credit of up to 50 percent of the totally cash value of any food items they donate to a shelter for homeless people, food kitchens, food bank, or any other entity in Michigan that provides accommodation, food, or meals to people who are indigent.
A report conducted in 2014 by the Council of Michigan Foundations found significant decreases in charitable giving, totaling a loss of more than $1.15 million in charitable donations following the elimination of these credits in 2011. SB 405 would encourage people to once again make these important contributions to support Michigan’s homeless shelters and food banks, so they may continue to serve those who need assistance.
SB 405 was approved by the Senate Committee on Finance, and has been sent to the Senate floor for further consideration.