February 24, 2005, Introduced by Reps. Steil, Tobocman, Stewart, Sak and Kooiman and referred to the Committee on Tax Policy.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
by amending section 38 (MCL 208.38), as amended by 1980 PA 318.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
38. (1) At the election of taxpayers not subject to Act
No.
281 of the Public Acts of 1967, as amended, being sections
206.1
to 206.532 of the Michigan Compiled Laws the income tax act
of 1967, 1967 PA 281, MCL 206.1 to 206.532, there shall be allowed
as a credit against the tax imposed by this act for the taxable
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 year to a all of the
following:
(a)
A public broadcast station as defined
by 47 U.S.C. USC
397
which that is not affiliated with an institution of higher
education. ,
public libraries, institutions
(b) A public library.
(c) Institutions of higher learning located within this state.
,
the
(d)
The Michigan colleges foundation. , or to a
(e) A nonprofit organization exempt from taxation under
section 501(c)(3) of the internal revenue code to fund the
construction of an arts building in this state.
(f) A nonprofit corporation, fund, foundation, trust, or
association organized and operated exclusively for the benefit of
institutions
of higher learning. An institution of higher learning
which
receives the contributions through a nonprofit corporation,
fund,
foundation, trust, or association organized and operated
exclusively
for the benefit of the institution of higher learning,
shall
make an annual report to the chairpersons of the house and
senate
appropriations committees and the house taxation committee
and
senate finance committee indicating in what manner the
contributions
were or are being used and any specific conditions
under
which a particular contribution was received and how the
money
or property from that contribution was or is being used. The
report
shall be due not later than February 1 for the immediately
preceding
calendar year and shall be issued in 1981 and 1982 only.
(2) The tax credit shall be permitted for a contribution under
subsection
(1)(f) only where if the
donee corporation, fund,
foundation, trust, or association is controlled or approved and
reviewed by the governing boards of the institutions benefiting
from the charitable contributions. The nonprofit corporation, fund,
foundation, trust, or association shall provide copies of their
annual independently audited financial statements to the auditor
general
of the this state and chairpersons of the senate and house
appropriations committees.
(3) (2)
The amount allowable as a credit
under this section
for any taxable year shall not exceed 5% of the tax liability for
that year as determined without regard to this section or
$5,000.00, whichever is less.
(4) (3)
As used in this section: ,
"institution
(a) "Arts building" means a building or structure the primary
purpose of which is to house and display artwork to the public.
(b) "Artwork" means an original, visual creation of quality
executed in any size or shape, in any media, using any kind or type
of materials.
(c) "Institution of higher learning" means an educational
institution located within this state meeting all of the following
requirements:
(i) (a)
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) (b)
It regularly offers education
above the twelfth
grade.
(iii) (c)
It awards associate, bachelors,
masters, or
doctoral degrees or any combination of those degrees or higher
education credits acceptable for those degrees granted by other
institutions of higher learning.
(iv) (d)
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
entitiled entitled "the directory of institutions of
higher education".
(d) (4)
As used in this section, "public "Public library"
or
libraries" means a public
library that term as defined in
section
2 of Act No. 89 of the Public Acts of 1977, being section
397.552
of the Michigan Compiled Laws 1977 PA 89, MCL 397.552.
(5) The credit allowed by this section shall not be in excess
of the tax liability of the taxpayer.