SENATE BILL No. 461

 

 

September 9, 2015, Introduced by Senators COLBECK, SCHUITMAKER and HANSEN and referred to the Committee on Finance.

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.713) by adding section 260.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 260. (1) For tax years that begin after December 31,

 

2015, a taxpayer may credit against the tax imposed by this act for

 

the tax 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 tax year

 

to any of the following:

 

     (a) This state pursuant to the Faxon-McNamee art in public

 

places act, 1980 PA 105, MCL 18.71 to 18.81, of an artwork created

 

by the taxpayer, for display in a public place.


     (b) The state art in public places fund created pursuant to

 

the Faxon-McNamee art in public places act, 1980 PA 105, MCL 18.71

 

to 18.81.

 

     (c) A municipality in this state of an artwork created by the

 

personal effort of the taxpayer for display in a public place.

 

     (d) Either a municipality of this state or a nonprofit

 

corporation affiliated with both a municipality and an art

 

institute located in the municipality, of money or artwork, whether

 

or not created by the personal effort of the taxpayer, if for the

 

purpose of benefiting an art institute located in that

 

municipality.

 

     (e) A public library.

 

     (f) A public broadcast station as defined by section 397 of

 

the communications act of 1934, 47 USC 397, that is not affiliated

 

with an institution of higher learning and that is located within

 

this state.

 

     (g) An institution of higher learning located within this

 

state.

 

     (h) The Michigan Colleges Foundation.

 

     (i) The state museum.

 

     (j) The department of state for the purpose of preservation of

 

the state archives.

 

     (k) A nonprofit corporation, fund, foundation, trust, or

 

association organized and operated exclusively for the benefit of

 

institutions of higher learning located within this state. A tax

 

credit for a contribution described in this subdivision is

 

permitted only if the donee corporation, fund, foundation, trust,

 


or association is controlled or approved and reviewed by the

 

governing board of the institution benefiting from the charitable

 

contribution. The nonprofit corporation, fund, foundation, trust,

 

or association shall provide copies of its annual independently

 

audited financial statements to the auditor general of this state

 

and chairpersons of the senate and house appropriations committees.

 

     (2) For a taxpayer other than a resident estate or trust, the

 

amount allowable as a credit under this section for a tax year

 

shall not exceed $100.00, or for a joint return as provided in

 

section 311, $200.00.

 

     (3) For a resident estate or trust, the amount allowable as a

 

credit under this section for a tax year shall not exceed 10% of

 

the tax liability for the year as determined without regard to this

 

section or $5,000.00, whichever is less, and shall not have been

 

deducted in arriving at federal taxable income.

 

     (4) As used in this section:

 

     (a) "Institution of higher learning" means only an educational

 

institution located within this state that meets all of the

 

following requirements:

 

     (i) 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) It regularly offers education above the twelfth grade.

 

     (iii) It awards associate, bachelor's, master's, or doctorate

 

degrees or a combination of those degrees or higher education

 

credits acceptable for those degrees granted by other institutions

 

of higher learning.

 


     (iv) 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 entitled "The Directory of Institutions of Higher

 

Education".

 

     (b) "Public library" means that term as defined in section 2

 

of the state aid to public libraries act, 1977 PA 89, MCL 397.552.

 

     (c) "Contributions made by the taxpayer" means, but is not

 

limited to, the fair market value of artwork created by the

 

personal effort of the taxpayer that is donated to and accepted as

 

a donation by a qualified organization. The fair market value of a

 

piece of artwork shall be determined at the time of the donation by

 

independent appraisal.

 

     (d) "Artwork" means an original, visual creation of quality

 

executed in any size or shape, in any media, using any kind or type

 

of materials.