Michigan Tax Credit Information

Donations to Forgotten Harvest

The State of Michigan provides a special Tax Credit for charitable gifts made to certified hunger relief organizations. The purpose of this tax credit is to encourage individuals and corporations to help relieve hunger in our state. Donations to Forgotten Harvest, subject to certain limitations, are deductible as a charitable contribution for federal income tax purposes. In addition, the State of Michigan provides an additional Michigan Tax Credit, if certain conditions are met, for donations to the organization equal to 50% of the donation. Our organization received formal notification that Forgotten Harvest qualifies as a Food Bank.

For detailed information regarding the State of Michigan Tax Credit, see the video below prepared by the Community Foundation For Southeast Michigan. Examples of the State of Michigan tax credit benefit are also provided on this page.

Individual Taxpayers

Married taxpayers are allowed a Michigan Income Tax Credit equal to the lesser of 50% of the donation or $200. Single taxpayers are allowed a Michigan Income Tax Credit equal to the lesser of 50% of the donation or $100. This credit is in addition to the federal charitable contribution deduction permitted as an itemized deduction.

Single Taxpayer Example:

Contribution: $200
Approximate Federal tax reduction (35%): $70
Michigan Tax Credit: $100
Net cost to you $30

Married Taxpayer Example:

Contribution: $400
Approximate Federal tax reduction (35%): 140
Michigan Tax Credit: 200
Net cost to you: $60

Business Taxpayers

Corporate taxpayers, S Corporations, Partnerships and Limited Companies are permitted a credit against their Michigan Single Business Tax liability equal to 50% of donations up to $10,000. The credit cannot exceed the lesser of 5% of the taxpayer’s tax liability before the credit or $5,000. This credit is in addition to the Federal income tax deduction the Shareholders/Partners will be entitled to based on their allocated share of the donation. Their Shareholders/Partners are also permitted a Michigan income tax credit, subject to the limitations discussed above, for their share of the donation.

Corporate Taxpayers

Contribution: $10,000
Approx. Federal tax reduction: $3,400
Approx. Michigan tax reduction: $190
Michigan Tax Credit: $5,000
Net cost of contribution $1,410

S Corporations, Partnerships, Limited Liability Companies & Partnerships

Contribution $10,000
Approx. Donor MI tax credit: $200
Donor MI tax credit: $5,000
Approx. Shareholder/Partner Fed. tax reduction: $3,500
Approx. Shareholder/Partner MI Tax Credit: $200
Net cost of contribution $1,100

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