Rep. Singh Sponsors Bill Reinstating Charitable Giving Tax Credit

Loss of charitable giving tax credit hitting taxpayers as they file 2012 taxes
Tuesday, May 7, 2013

LANSING - State Representative Sam Singh (D-East Lansing) recently introduced legislation to reinstate a charitable tax credit for taxpayers that was eliminated in the tax changes passed by the Republican majority in 2011. Singh’s bill, House Bill 4476, would reinstate a tax credit of 50% of the aggregate amount of a taxpayer’s charitable contributions during a fiscal year with the credit worth up to $100 for a single tax payer, and $200 for a husband and wife filing a joint return. The bill allows a credit for any donation to a 501(c) (3) organization that is registered with the Attorney General’s Office of Charitable Trust.

“As state agencies cut back and shift more responsibility to non-profits it is imperative we provide them with the resources and tools necessary to complete their social mission,” said Singh. “The charitable tax credit will continue to encourage people to donate to charities by providing the greatest incentive possible.”

Michigan’s charitable tax credit was eliminated in 2011 as part of a massive tax reform package to balance the state budget. Thousands of Michigan taxpayers are discovering this year, as they do their 2012 taxes, that they are no longer able to file for a charitable tax credit. Michigan’s nonprofit sector directly employed almost 435,000 people in 2011 and generates $137 billion each year in overall economic activity.

“The donations that could be claimed under a charitable tax credit not only help people in need, they also help create jobs because we need people to work at nonprofits and run their necessary and valuable programs in our communities,” said Singh. “My tax credit would be a win-win situation for everyone: helping people in need through donations rather than entirely with state taxpayer dollars while also creating jobs.”