New legislation (Public Acts No. 450 of 2008) went into effect January 9, 2009, that allows for an unprecedented state tax credit for Individual Development Account (IDA) contributions. IDA contributions from individuals or businesses are eligible for a Michigan tax credit of $.75 for each $1.00 donated.
As an example: A contribution of $1000.00 multiplied by a credit of 75% equals a credit amount of $750.00
Some more information:
- Tax Credit FAQ (pdf)
- IDA Tax Credit Flyer (pdf)
- The tax credit is non-refundable, and allocated on a first come, first serve basis until the amount of credits reaches the state’s $1 million limit.
- The Michigan Department of Treasury requires a social security number for contributions over $500 for this credit. Please place your SSN on your check/money order, or contact MIDAP directly with this information.
- Contributions must be dated no later than December 31 for a tax credit that year
- Checks should be made out to MIDAP. Contributions to MIDAP are tax deductible for federal taxes
- Individual and corporate donations are placed in a reserve account at a qualified fiduciary organization, and are disbursed equitably among five Regional Coordinating Organizations and 35 program sites
Personal or corporate checks, certified checks or money orders (made payable to MIDAP) can be mailed to:
IDA Tax Credit Fiduciary
c/o OLHSA
196 Cesar E Chavez Ave
PO 430598
Pontiac MI 48343-0598
For more information, please call 248-209-2691.
OLHSA was selected by MSHDA to serve as the official designated entity to accept contributions for the Michigan IDA Partnership. OLHSA is a 501 c 3 non-profit organization and provided no goods or services in return for this contribution.
