Tax breaks for: Nonprofits
Has Michigan got a deal for you
Click on any of the categories below to see how many tax breaks are out there, and how much they cost the state treasury. The numbers were taken from the state's executive budget for 2013 and 2014.
| Type of tax | Category | 2014 tax break value | Description |
|---|---|---|---|
| Sales and Use Tax Expenditures | Services (Including Nonprofits) | $10,709,100,000 | Exempts services for categories listed in the table below. The estimates include services consumed by businesses, consumers, and government/non-profit entities. Approximately $3.54 billion of the total represents services purchased by consumers, including health care and professional services. |
| Property and Other Local Tax Expenditures | Tax Exempt Property | $1,758,000,000 | There are seven categories of tax exempt property, including nonprofit, religious, government-owned, and education properties. |
| Sales and Use Tax Expenditures | Nonprofit Organizations | $259,850,000 | Exempts sales to nonprofit schools, hospitals, homes for the care of children or aged persons, and other benevolent institutions operated by an entity of government, a regularly-organized church, a religious or fraternal organization, a veteran’s organization, a nonprofit corporation, or a parent-cooperative preschool. |
| Sales and Use Tax Expenditures | Food for Students | $22,930,000 | Exempts sales of food by nonprofit schools or other similar educational institutions to students. |
| Motor Vehicles Registration Fee | Public and Nonprofit Vehicles | $10,950,000 | Motor vehicles owned and operated by the state, a state institution, a municipality, a nonprofit college or university, or other nonprofit organization pay a lower rate of $5 for license plates with a five-year registration period. |
| Sales and Use Tax Expenditures | Nonprofit Hospital or Housing Construction | $1,720,000 | Exempts tangible personal property used by contractors where the property is affixed to and made a structural part of the real estate of a nonprofit hospital or nonprofit housing. |
| Sales and Use Tax Expenditures | Nonprofit Ambulance and Fire Services | Exempts sales of vehicles not for resale to Michigan nonprofit corporations organized exclusively to provide a community with ambulance or fire department services. | |
| Sales and Use Tax Expenditures | Nonprofits Sales under $5,000 | Exempts aggregate sales under $5,000 for qualified nonprofit organizations | |
| Property and Other Local Tax Expenditures | Cultural Organizations | Exempts from the property tax real property owned and occupied by a nonprofit organization meeting specific requirements. Some of the requirements are that the organization must be: incorporated under state law; devoted exclusively to the development of literature, music, painting or sculpture; and available to the general public on a regular basis. The cost of this provision has not been estimated due to lack of data. |
In some cases, the state does not estimate the value of a tax break, leaving the tax break value empty in its tables.
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