Michigan nonprofits are urging donors to take advantage of a soon-to-expire tax credit, according to an article in The Detroit News.
The tax deduction, called the Credit for Charitable Gifts, raised $100 million last year for Michigan charities, and gave taxpayers over $40 million in write-offs on their state returns. It has been law since 1967, but Governor Rick Snyder and the state Legislature decided that to end it starting Jan. 1. The primary reason for this was because it cost the state $43 million for nearly $100 million in donations. Groups that opposed the repeal of the credit attempted to defend it by saying that it provided a lot of government support for community and cultural groups. Those protests were not enough to save the credit, though there have been rumors that the Snyder administration will add an appropriation for a tax credit in the annual budget.
Charitable deduction has been a big subject in the national news lately. The Obama administration has repeatedly tried to cap deductions at 28 percent for those earning more than $200,000. The most recent attempt at this was in the White House's proposed American Jobs Act, but the provision was removed by Senate Majority Leader Harry Reid (D-Nev.).
No comments:
Post a Comment