1 / 20

Michigan’s Individual Development Account Tax Credit

Michigan’s Individual Development Account Tax Credit. Michigan IDA Partnership. Objectives. What is MIDAP? What is an Individual Development Account (IDA)? How does the IDA tax credit support IDAs? What kind of success have IDAs had in Michigan? Questions. Michigan IDA Partnership (MIDAP).

garth
Download Presentation

Michigan’s Individual Development Account Tax Credit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Michigan’s Individual Development Account Tax Credit Michigan IDA Partnership

  2. Objectives • What is MIDAP? • What is an Individual Development Account (IDA)? • How does the IDA tax credit support IDAs? • What kind of success have IDAs had in Michigan? • Questions

  3. Michigan IDA Partnership (MIDAP) • The Michigan IDA Partnership is a statewide collaborative of over 35 Individual Development Account programs and their 5 Regional Coordinating Organizations, established in 2001 with the purpose to provide coordination, training, and technical assistance to IDA program sites across the state of Michigan. • MIDAP is responsible for overseeing the donations received for the IDA tax credit. • MIDAP is coordinated through Oakland Livingston Human Service Agency (OLHSA).

  4. MIDAP’s Regional Coordinating Organizations(RCO) • Detroit Region RCO: United Way for Southeast Michigan (UWSEM) • Northern Region RCO: Northwest Michigan Community Action Agency (NWCAA) • Southern Region RCO: Community Action Agency (CAA) • Thumb Region RCO: Oakland Livingston Human Service Agency (OLHSA) • Western Region RCO: Inner City Christian Federation (ICCF)

  5. Detroit Region RCO:United Way of Southeastern Michigan(UWSEM) United Way of Southeastern Michigan 660 Woodward Avenue, Suite 300 Detroit MI.  48226 Monica Esquivel Monica.esquivel@liveunitedsem.org 313-226-9487, 313-226-9324 fax UWSEM’s Program Sites • Common Ground Sanctuary, Royal Oak • Focus: Hope, Detroit • Habitat for Humanity of Detroit, Detroit • New Haven Medical Center, New Haven • Southwest Housing Solutions, Detroit • YMCA of Metro Detroit, Detroit • YWCA of Western Wayne, Inkster, Dearborn

  6. Northern Region RCO:Northwest Michigan Community Action Agency(NMCAA) Northwest Michigan Community Action Agency 3963 Three Mile Rd. Traverse City MI.  49686 Karen Emerson kemerson@nmcaa.net 231-947-3780, 231-947-4935 fax NMCAA’s Program Sites • Gogebic-Ontonagon CAA, Ironwood • Mid-Michigan CAA, Clare • Northeast Michigan CSA, Alpena • Northwest Mi. CAA, Traverse, Cadillac, Petoskey

  7. Southern Region RCO:Community Action Agency (CAA) Community Action Agency (CAA) 1214 Greenwood Ave, Jackson MI.  49203 Toby Budd tbudd@caajlh.org 517-784-4800, 517-784-5188 fax CAA’s Program Sites • Capital Area Community Services, Corunna • Community Action Agency, Jackson, Hillsdale, Adrian • Franklin Street Community Housing Corporation, Lansing • Housing Services of Eaton County, Charlotte  • Kalamazoo Neighborhood Housing Services, Kalamazoo • Monroe County Opportunity Program, Monroe • POWER, Ypsilanti • Southwest Michigan Community Action Agency, Benton Harbor

  8. Thumb Region RCO:Oakland Livingston Human Service Agency(OLHSA) Oakland Livingston Human Service Agency (OLHSA) 196 Cesar E Chavez Pontiac MI.  48343 Heidi Henderson heidih@olhsa.org 248-209-2691, 248-209-2645 fax OLHSA’s Program Sites • CAA of St Clair County, Port Huron • Flint Neighborhood Improvement and Preservation Project, Flint • Human Development Commission, Caro • Lighthouse of Oakland County, Pontiac  • Macomb County CSA, Macomb • Oakland Livingston HSA, Pontiac, Howell • Saginaw Family Network, Saginaw  • Saginaw Habitat for Humanity, Saginaw • Wayne Metro CAA, Ecorse

  9. Western Region RCO: Inner City Christian Federation (ICCF) Inner City Christian Federation (ICCF) 920 Cherry SE Grand Rapids MI.  49506 Elzie Honicutt ehonicutt@iccf.org 616-336-9333, 616-336-9323 fax ICCF’s Program Sites • ICCF, Grand Rapids • Grand Rapids Opportunities for Women • Neighbors Plus, Holland • NCCS Center for Nonprofit Housing, Fremont, Muskegon Heights

  10. IDA: What Are They? An IDA is a matched savings account for: • Buying a Home • Starting or Expanding a Small Business • Post Secondary Education or Job Training Savings, up to $1,000, is matched as follows: • 3:1 for homeownership • 2:1 for small business and post secondary education

  11. Participation Requirements • Must be employed • Income cannot exceed guidelines • Agree to save a minimum of $20 per month from earnings • Agree to complete Asset Specific education and financial education • Agree to address any debt and credit issues • Agree to stay in program a minimum of 6 months

  12. Funding for IDAs • Grants from Department of Health & Humans Services-Assets for Independence (AFI) Program • These grants require a 1:1 match of non-federal money • The majority of this funding provides for the match on accounts. • 15% can be used for certain administrative costs • Grants from the Michigan State Housing Development Authority • Provides the non-federal match for the AFI grant • Provides support for RCO functions • Provides support to program sites for direct service activities (i.e. financial education, credit counseling) • Provides support for the operations of MIDAP •  Grants from financial institutions • Provides non-federal match for the AFI grant and direct service resources to program sites • Tax Credit Donations

  13. Michigan State Income Tax Credit for IDA contribution • Credit passed in 2008 (P.A. 450) • 75% Michigan State income tax credit • Subtracted from what taxpayer owes on state return • Non-refundable • $1 million maximum credits per year • No limit on amount of individual or corporate contribution that can be claimed for credit

  14. Michigan State Income Tax Credit for IDA contribution • All contributions received are allocated to five RCOs in December of each year • Allocation is based on the number of active IDA accounts in that calendar year • Funds are used for IDA match and direct service • Direct service includes classes and counseling to help IDA account holders succeed in saving and purchasing assets

  15. Michigan State Income Tax Credit for IDA contribution • RCOs use tax credit funds to apply for matching funds from federal government • Assets for Independence Act (AFI) $25 million available nationally • Funds are combined with other non-federal funds received, for instance from the Michigan State Housing Development Authority (MSHDA) • Upon award all funds, federal and tax credit contributions are placed in specific restricted account for IDA use only

  16. How to contribute • Checks should be made payable to MIDAP • Contributions must be dated no later than December 31 for a tax credit in that year • Checks may be sent to any of the RCO sites care of the IDA program • MIDAP is managed by OLHSA a 501 c 3 • A letter of acknowledgement for the contribution will be sent by OLHSA • Contributions to MIDAP are tax deductible for federal taxes

  17. How to contribute • For more information contact MIDAP at OLHSA • (248) 209-2691 • www.midap.info • Click on tax credit tab

  18. IDA Success Summary Statewide, as of  December 31, 2009: Homeownership Accounts 1,125 Education Accounts 288 Business Accounts 182 Total Participant Savings Used $1,497,571 Total Match Amount $4,614,481 Current Mortgages Leveraged $88,439,605

  19. Local IDA Success

  20. Questions?

More Related