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 Michigan 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 filling 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).
  • Tax credit is equal to the smaller of 50% of the amount contributed, 5% of the net MBT tax liability or $5,000.

Note: Under the MBT tax credit is not available to insurance companies or financial institutions.

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

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