February 3, 2005, Introduced by Reps. Gaffney, Accavitti, Nofs, Mortimer, Hune, Palsrok, Gleason, Ward, Hildenbrand, Stakoe, Huizenga, Pearce, Elsenheimer, Sak, Lipsey and Taub and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 272.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 272. (1) For tax years that begin after December 31,
2004, a taxpayer may claim a credit against the tax imposed under
this act equal to the amount that the taxpayer contributed to an
educational foundation during the tax year or $500.00, whichever is
less.
(2) If the amount of the credit exceeds the tax liability of
the taxpayer for the tax year, that portion of the credit that
exceeds the tax liability shall be refunded.
(3) As used in this section:
(a) "Education foundation" means an organization that applies
to the department for certification on or before April 1 of the tax
year for which the taxpayer is claiming the credit, that annually
submits documentation to the department that demonstrates continued
compliance with this subdivision if appropriate, and that the
department certifies for that tax year as meeting all of the
following requirements:
(i) Meets the requirement of section 501(c)(3) of the internal
revenue code.
(ii) Maintains an ongoing program to attract new funds by
seeking gifts and bequests from a wide range of potential donors in
the community or area served.
(iii) Dedicates all funds, gifts, and bequests exclusively to a
school district or public school.
(iv) Is publicly supported as defined by the regulations of the
United States department of treasury, 26 CFR 1.170A-9(e)(10).
(v) Meets the requirements for treatment as a single entity
contained in the regulations of the United States department of
treasury, 26 CFR 1.170A-9(e)(11).
(b) "School district" means a school district, local act
school district, or intermediate school district as those terms are
defined in the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.