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.

Individuals

Nonprofits

Businesses

Manufacturers

Miscellaneous

Farmers

Veterans and active military

Students

Historic preservation

Oil, mineral industries

The poor

Religious organizations

Native Americans

Tax breaks for nonprofits

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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