Michigan House Bill HB5440

Michigan 2025-2026 Regular Session

• Introduced: 12/23/25
• Refer: 12/23/25

Caption

Individual income tax: checkoff; homeless advocacy fund; create checkoff option. Amends sec. 435 of 1967 PA 281 (MCL 206.435). TIE BAR WITH: HB 5439'25

Impact

The bill will have significant implications for state law by enhancing the ability of individual taxpayers to support charitable initiatives through their tax returns. By adding the homeless advocacy fund to the list of designated funds, the bill seeks to address homelessness and related issues more effectively. Furthermore, it establishes a framework for future contribution designations, and it mandates that contribution designations which fail to meet fund-raising thresholds be removed, ensuring that only viable organizations receive support from taxpayers.

Summary

House Bill 5440 aims to amend the Income Tax Act of 1967 by allowing individuals to designate contributions from their state income tax refunds to various funds including a newly established homeless advocacy fund. This bill facilitates taxpayers in supporting multiple local organizations through a streamlined process via their annual tax returns. It introduces specific guidelines and criteria for determining which funds qualify for contributions, ensuring that contributions are directed towards organizations that meet certain financial standards and community service criteria.

Contention

One point of contention surrounding HB 5440 involves the requirement that designated funds must raise a minimum of $50,000 over two consecutive years to remain on the contributions schedule. Critics may argue that this criterion could disadvantage smaller, emerging organizations that have significant local impact but may struggle to meet the financial threshold due to limited reach or public awareness. Additionally, some lawmakers may raise concerns regarding the allocation of state funds and the impact of adding more options for deductions on overall tax revenues.