Section 206.260 - Tax credit for certain charitable contributions; limitations; definitions; limitation on sum of credits.
INCOME TAX ACT OF 1967 (EXCERPT)
Act 281 of 1967
206.260 Tax credit for certain charitable contributions; limitations; definitions; limitation on sum of credits.
Sec. 260.
(1) A taxpayer may credit against the tax imposed by this act for the tax year, an amount, subject to the applicable limitations provided by this section, equal to 50% of the aggregate amount of charitable contributions made by the taxpayer during the tax year to any of the following:
(a) This state pursuant to the Faxon-McNamee art in public places act, Act No. 105 of the Public Acts of 1980, being sections 18.71 to 18.81 of the Michigan Compiled Laws, of an artwork created by the taxpayer, for display in a public place.
(b) The state art in public places fund created pursuant to Act No. 105 of the Public Acts of 1980.
(c) A municipality in this state of an artwork created by the personal effort of the taxpayer for display in a public place.
(d) Either a municipality of this state or a nonprofit corporation affiliated with both a municipality and an art institute located in the municipality, of money or artwork, whether or not created by the personal effort of the taxpayer, if for the purpose of benefiting an art institute located in that municipality.
(e) A public library.
(f) A public broadcast station as defined by section 397 of subpart d of title III of the communications act of 1934, 47 U.S.C. 397, that is not affiliated with an institution of higher education and that is located within this state.
(g) An institution of higher learning located within this state.
(h) The Michigan colleges foundation.
(i) The state museum.
(j) The department of state for the purpose of preservation of the state archives.
(k) A nonprofit corporation, fund, foundation, trust, or association organized and operated exclusively for the benefit of institutions of higher learning located within this state. A tax credit for a contribution described in this subdivision is permitted only if the donee corporation, fund, foundation, trust, or association is controlled or approved and reviewed by the governing board of the institution benefiting from the charitable contribution. The nonprofit corporation, fund, foundation, trust, or association shall provide copies of its annual independently audited financial statements to the auditor general of this state and chairpersons of the senate and house appropriations committees.
(2) For a taxpayer other than a resident estate or trust, the amount allowable as a credit under this section for a tax year shall not exceed $100.00, or for a husband and wife filing a joint return as provided in section 311, $200.00.
(3) For a resident estate or trust, the amount allowable as a credit under this section for a tax year shall not exceed 10% of the tax liability for the year as determined without regard to this section or $5,000.00, whichever is less and shall not have been deducted in arriving at federal taxable income.
(4) As used in this section:
(a) “Institution of higher learning” means only an educational institution located within this state that meets all of the following requirements:
(i) It maintains a regular faculty and curriculum and has a regularly enrolled body of students in attendance at the place where its educational activities are carried on.
(ii) It regularly offers education above the twelfth grade.
(iii) It awards associate, bachelors, masters, or doctoral degrees or a combination of those degrees or higher education credits acceptable for those degrees granted by other institutions of higher learning.
(iv) It is recognized by the state board of education as an institution of higher learning and appears as an institution of higher learning in the annual publication of the department of education entitled “The Directory of Institutions of Higher Education”.
(b) “Public library” means that term as defined in section 2 of the state aid to public libraries act, Act No. 89 of the Public Acts of 1977, being section 397.552 of the Michigan Compiled Laws.
(c) “Contributions made by the taxpayer” means, but is not limited to, the fair market value of artwork created by the personal effort of the taxpayer that is donated to and accepted as a donation by a qualified organization. The fair market value of a piece of artwork shall be determined at the time of the donation by independent appraisal.
(d) “Artwork” means an original, visual creation of quality executed in any size or shape, in any media, using any kind or type of materials.
(5) The sum of the credits allowed by section 257 and this section shall not exceed the tax liability of the taxpayer.
History: Add. 1968, Act 315, Eff. Nov. 15, 1968 ;-- Am. 1972, Act 332, Imd. Eff. Jan. 4, 1973 ;-- Am. 1973, Act 20, Imd. Eff. May 16, 1973 ;-- Am. 1974, Act 290, Imd. Eff. Oct. 15, 1974 ;-- Am. 1975, Act 233, Imd. Eff. Aug. 27, 1975 ;-- Am. 1979, Act 199, Eff. Mar. 27, 1980 ;-- Am. 1980, Act 475, Eff. Mar. 31, 1981 ;-- Am. 1984, Act 419, Imd. Eff. Dec. 28, 1984 ;-- Am. 1988, Act 153, Imd. Eff. June 14, 1988 ;-- Am. 1996, Act 484, Eff. Jan. 1, 1997
Compiler's Notes: Section 2 of Act 153 of 1988 provides: “This amendatory act shall take effect for tax years beginning after 1987.”