How does the tax deduction and tax credit works for federal and state of Michigan?
For the state of Michigan: The law permits taxpayers to reduce their Michigan Income Tax or Single Business Tax liability by a credit of 50 percent of the amount contributed to a community foundation endowment fund. * If you contribute $200 or more, your tax credit will be $100 (maximum credit) for an individual filing singly. * If you and your spouse contribute $400 or more, your tax credit will be $200 (maximum credit) for a married couple filing jointly. * If your business contributes $10,000 or more, your tax credit will be $5,000 (maximum credit) or five percent of tax liability before claiming any credits, whichever is less, for taxpayers filing Michigan Single Business Tax returns. Through the use of endowment, your gift is invested forever.
