Michigan Community Foundation Tax Credit

Imlay City: You might not find a carriage shop in Imlay City today, but there are car dealers and a variety of retail stores.

Giving through Four County Community Foundation qualifies you for big savings. The State of Michigan provides a state tax credit for gifts to certified community foundations in Michigan. Only contributions placed in a permanent endowment are eligible for the Michigan Community Foundation Tax Credit. Here’s how it works.

The law permits a taxpayer to reduce Michigan income tax or Single Business Tax liability by a credit of 50 percent of the amount contributed to a community foundation, subject to a maximum credit of:

  • $100 for an individual filing singly (for a $200 donation);
  • $200 for a married couple filing jointly (based on a $400 donation);
  • $5,000, or 10 percent of tax liability before claiming any credits, whichever is less, for a resident estate or trust (based on a $ 10,000 gift); and
  • $5,000, or 5 percent of tax liability before claiming any credits, whichever is less, for taxpayers filing a Michigan Single Business Tax return (based on a $ 10,000 gift).

For more information about tax advantages in making a gift through Four County Community Foundation, please contact us.

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