Public Policy & Advocacy News
 
Legislative Updates
A summary of legislation of interest to Michigan Nonprofit Association is available in the following documents, which are prepared by Dykema Gossett PLLC and updated weekly
Federal Charitable Income Tax Deducation Protected in President's Plan?
"The Blue Print for an America Built to Last" details the policy priorities President Obama laid out in his State of the Union address on January 24, 2012. The plan highlights how the President's Administration plans to deal with inequities in the tax code. The plan does specifically say that, "The Administration will work to ensure that this rule is implemented
in a way that is equitable, including not disadvantaging individuals who make large charitable
contributions."
MNA will continue to educate and work with Michigan's Congressional delegation to ensure nonprofits do not become collateral damage in broader debates around the federal budget.
Health Care Exchange
The Michigan Nonprofit Association (MNA) welcomes Governor’s Snyder’s and the Michigan Senate’s recommendations for the state health care exchange through the Affordable Care Act (2009) to be organized as a nonprofit organization. MNA appreciates the Governor’s active participation in the creation of the “Michigan Health Marketplace.” MNA encourages the Governor and the Michigan Legislature to seek the advice of the nonprofit sector on not just ensuring the governance of the Marketplace is created to be transparent and accountable to the Exchange clients, but also to listen and learn from the nonprofit sector on how best to serve a clientele that many of MNA member organizations regularly serves and engages. As this policy moves forward, we strongly urge policymakers to continue to structure the operation of the Michigan Health Marketplace with the integrity, accountability, and dependability for the clients it will serve.
Updates to IRS List of Revoked Tax-Exempt Organizations
The Internal Revenue Service (IRS) will update monthly the list of organizations whose tax-exempt status has been revoked for failure to file some form of Form 990 for three consecutive years. While the number of organizations whose exempt status has been revoked may increase suddenly when a common filing deadline has passed, as of the July 6 update, there have only been deletions from the list. The revocation list is now available to view on the IRS website. To learn more about the IRS revocation list click here.
Michigan Elimination of Charitable Tax Credits
Tax reform legislation was passed by both the Senate and House on May 12th, sending it to Governor Rick Snyder, which he signed on May 25. The bill eliminates the charitable tax credit, replaces the Michigan Business Tax with a 6 percent corporate income tax, and taxes pensions. The elimination of the charitable tax credits will reduce the ability of Michigan’s nonprofit sector to serve those most in need.
In more positive news, included in the same tax legislation referenced above, Michigan’s Earned Income Tax Credit will not be eliminated. Instead, filers will receive a 6 percent match of the federal EITC, rather than the 20 percent match as the credit stands now. While this is a reduction, this legislation preserves the spirit of the EITC. The original legislation zeroed out the credit, later to be changed to a $25 per child tax credit. The 6 percent state EITC will still help low-income families.
This article describes new trends in eliminating tax credits: Cash-strapped states look to roll back tax credits (John Wisely, USA TODAY)
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