July 11, 2008
Offers income tax credit for in-kind food donations
LANSING - Governor Jennifer M. Granholm today signed legislation that offers a Michigan income tax credit to individuals who make in-kind food donations to food banks, food pantries, and homeless shelters as part of a matching program with a participating food retailer.
"Michigan citizens provide significant support to the less fortunate among us every year through monetary donations to food banks and community agencies," Granholm said. "This credit will enhance that giving by encouraging retailers to create matching programs in which a customer's purchase will be matched as part of a donation to the food bank, pantry or homeless shelter."
Beginning with the 2008 tax year (returns filed in 2009), a taxpayer may claim a credit against their Michigan income tax obligation equal to 50 percent of the sum of the cash amount and of the value of food items contributed. The total amount of the credit, for both in-kind and cash donations, is limited to $100 per individual and $200 for a husband and wife filing jointly.
To qualify for a credit, donations must be made as part of a matching donation program with a food retailer to a food kitchen, food bank, or other entity located in Michigan, whose primary purpose is to provide shelter, food, or meals to people who are indigent, if a contribution to that entity is also tax deductible for the donor under the Internal Revenue Code.
Senate Bill 150 (PA 207) was sponsored by Jason Allen (R-Traverse City).
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