Michigan Tax Credit for Community Foundations:

What is the tax credit all about?
An exciting opportunity awaits you as a result of the Michigan Income Tax legislation.

Taxpayers can generate a total contribution to the Community Foundation for Muskegon County worth more than three times the actual out-of-pocket cost! This astonishing effect it created via the Michigan Tax Credit for Community Foundations.

Here's the way it works for both individuals and corporations.
The law permits a taxpayer to reduce Michigan Income Tax or Single Business Tax liability by a credit of 50% of the amount contributed to a community foundation, subject to a maximum credit of:

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

Click here for examples of what a gift to the Community Foundation for Muskegon County might actually cost you under this provision of the Michigan tax code.