Revenue Administrative Bulletin 1990-27

Approved: October 5, 1990

CERTIFICATION OF COMMUNITY FOUNDATIONS FOR TAX YEAR 1991
SINGLE BUSINESS TAX CREDIT AND INCOME TAX CREDIT

RAB-90-27. This bulletin describes the procedure for certifying organizations which were not certified for a prior tax year and for recertifying existing certified community foundations for purposes of the credit authorized under Section 38c of the Single Business Tax Act and Section 261 of the Income Tax Act, as last amended by Public Act 135 of 1990 and Public Act 136 of 1990, respectively.

Certification Procedure

The following certification procedure applies to those community foundations which were not certified for a prior tax year.

Community foundations should complete and submit application form C-1052 no later than April 1, 1991 to:

Community Foundation Unit
Hearings and Tax Research Division
Treasury Department
P.O. Box 15128
Lansing, MI 48901

In addition to the information requested on form C-1052, please submit the following information:

1. If your foundation has existed less than 4 years:

1. Send a copy of your annual financial statement for each year, and
2. Send a summary of the activities your foundation has supported since its formation.

1. If you have filed attachments with a 990 federal tax return, send a copy of all attachments with the 990 return.

Except as modified by Public Acts 135 and 136 of 1990, eligibility will be reviewed in accordance with the certification statutory criteria outlined on pages 3 and 4 of Revenue Administrative Bulletin 1989-4. The 1990 amendments will permit a foundation to apply if it was incorporated or established as a trust prior to September 1 of the year prior to the tax year for which the credit is claimed. Appeal procedures, loss of certification, and sanctions will be the same as those described in Revenue Administrative Bulletin 1989-4.

The Community Foundation Unit will respond to questions about the certification process. Call (517)373-3672.

Recertification Procedure

The following procedure applies to existing certified community foundations.

Community foundations should complete and submit form C-1060 no later than November 15, 1990 to:

Community Foundation Unit
Hearings and Tax Research Division
Treasury Department
P.O. Box 15128
Lansing, MI 48901

The provisions of Revenue Administrative Bulletin 1989-4 will be followed where applicable.

The Community Foundation Unit will respond to questions about the recertification process. Call (517) 373-3672 for further information.

Availability of Tax Credit for Tax Year 1991

The tax credit statute states that the credit does not apply in a tax year for which the aggregate amount of the credit claimed by all taxpayers for all prior tax years exceeds $3 million.

The Department of Treasury will announce whether the tax credit is allowable for tax year 1991 on or about June 1, 1991. If the credit is available for tax year 1991, the department will announce the list of community foundations that are certified for tax year 1991.