Taxpayers who provide a contribution to one of the Chippewa County Community Foundation's endowment funds will find that their gift can be worth almost three times its actual out-of-pocket cost! This astonishing benefit comes to the citizens of Michigan by virtue of Michigan's Tax Credit for Community Foundations. 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:
- A. $100 for an individual filing singly
(based on a $200 contribution)
- B. $200 for a married couple filing jointly
(for a $400 contribution)
- C. $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)
- D. $5,000 or 5% of tax liability before claiming any credits, whichever is less, for taxpayers filing Michigan Business
Tax returns (for a $10,000 contribution)