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News & Events Digest: December 2024





Treasurer Rachael Eubanks Square
Date Set for January Consensus Revenue Estimating Conference

State Treasurer Rachael Eubanks recently announced that the January Consensus Revenue Estimating Conference (CREC) will be held on Friday, Jan. 10, 2025, in the House Appropriations Committee Room on the third floor of the Michigan State Capitol.

The conference will begin at 9 a.m. with presentations focusing on the U.S. and Michigan economies and state government revenues. Official revenue forecasts for remainder of Fiscal Year 2025, the upcoming 2026 fiscal year and the initial forecast for the 2027 fiscal year will be established at the conference.

“The Consensus Revenue Estimating Conference is held at least twice a year in January and May,” State Treasurer Eubanks said. “The January conference begins the state of Michigan’s annual budget process, with the revenue forecast adopted becoming the starting point for the Governor's executive budget. The May conference provides an update to the forecast before the state budget is finalized.”

Official forecasts will be established by a consensus of the conference principals, consisting of the State Treasurer or State Budget Director, the Director of the Senate Fiscal Agency and the Director of the House Fiscal Agency.

For 2025, the State Treasurer will be chairing both the January and May conferences. The chair role rotates among the principals annually.

To learn more about the CREC, go to www.michigan.gov/crec [ [link removed] ].



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Matt Clark
Matt Clark named Collection Services Bureau Director

Deputy State Treasurer Kavita Kale recently announced that Matt Clark has been named as the new Collection Services Bureau Director, effective Jan. 5, 2025.

Matt has been with Michigan Department of Treasury since 2007, serving in various roles in both the Collection Services Bureau and Tax Administration Services Bureau (TASB), including as a departmental analyst, departmental specialist, state administrative manager and most recently as the state division administrator overseeing the Business Taxpayer Services Division within TASB.

Prior to Treasury, Matt worked for Michigan Gaming Control Board as a financial analyst. He has also worked in the private sector for over nine years as an accountant for an accounting firm and as a manager for a large retailer.

Matt has demonstrated leadership in systems and data, program and people management, and project/contract management. His technical expertise coupled with his experience in building successful teams and strategic partnerships will benefit the Collection Services Bureau.

Please join us in welcoming Matt into his new position!



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Donation Heart
New Tax Credit for Live Organ Donation

More than 2,000 Michigan residents are currently waiting for organ donations, most of whom require kidneys. Nationally, 13 people die every day waiting for a kidney donation.

Removing economic barriers that prevent live organ donations is considered key to increasing this lifesaving gift.

Beginning Tax Year 2025, Michigan taxpayers can take a new tax credit for up to $10,000 in unreimbursed expenses associated with donating a live human organ to another human for transplant. The new credit is a one-time, nonrefundable credit available to the taxpayer for donations made by themselves or any of the dependents claimed by the taxpayer.

Expenses include, but are not limited to, any unreimbursed travel or lodging expenses, lost wages, or childcare expenses. Claimable expenses are those incurred in the tax year before the donation, the year of the donation, or the year following the organ donation.

Because it is a one-time credit, a taxpayer may only take the credit for expenses incurred in one of those years. Additionally, because the credit is non-refundable, it may only be taken up to the amount of the taxpayer’s tax liability for the year claimed even if the unreimbursed expenses exceed that amount.

For purposes of the new tax credit, donated human organs include, as defined under the Public Health Code, a kidney, liver, heart, lung, pancreas, intestine, bone marrow, cornea, eye, bone, skin, cartilage, dura mater, ligaments, tendons, fascia, pituitary gland, middle ear structures and any other human organ specified by rules promulgated by the Department of Health and Human Services.

Human organ does not include whole blood, blood plasma, blood products, blood derivatives, other self-replicating body fluids, or human hair.

Taxpayers are required to submit verification of the donation with the annual return on which the credit is claimed. The Michigan Department of Treasury may require reasonable proof of the donation expenses claimed.



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Scam Alert
Fraudsters Using Fake Letters in Collections Scam

Michigan taxpayers with past-due tax debts should be aware of an aggressive scam making the rounds through the U.S. Postal Service.

In the scheme, taxpayers receive a letter [ [link removed] ] about an overdue state tax bill that requests individuals contact a toll-free number to resolve the debt.  The letter threatens to seize a taxpayer’s property — including bank accounts, wages, business assets, cars, real estate, refunds and cash — if the debt is not settled.

The piece of correspondence appears credible to the taxpayer because it uses specific personal facts pulled directly from the internet and public records, as well as has an official-looking “DR-1024” form number. The scammer’s letter attempts to lure the taxpayer into a situation where they could make a payment to a criminal.

“Scammers have been circulating these fake letters in the mail across the country,” said Deputy State Treasurer Kavita Kale, who oversees Treasury’s Revenue Services programs. “The state of Michigan works collaboratively with individuals to find solutions to their outstanding state debts. If you receive an aggressive and threatening letter, please contact Treasury directly so we can log the scam, clarify your state debt status and discuss options.”

Treasury corresponds with taxpayers through official letters that use state of Michigan letterhead that embody both the names of the governor and state treasurer. These official letters are sent through the U.S. Postal Service, provide several options to resolve an outstanding debt and outline taxpayer rights.

Taxpayers who receive a letter from a scammer or have questions about their state debts should call Treasury’s Collections Service Center at 517-636-5265. A customer service representative can log the scam, verify outstanding state debts and provide flexible payment options.



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Fostering Futures Scholarship
Countdown to year-end donations: Support Fostering Futures Scholarship Fund, earn tax break

As 2024 draws to a close, the *Fostering Futures Scholarship Trust Fund* urges generous Michiganders to act quickly — there are only a few days left to make a year-end donation that directly supports foster youth in pursuing higher education while also making contributors eligible for state and federal tax deductions.

This year, Fostering Futures highlights the success of *Rebecca Yager*, a scholarship recipient and student at Delta College in Saginaw County. The *Bay City Central High School graduate’s* inspiring story is a testament to the power of education in shaping futures.

“Being awarded this scholarship has been life-changing,” Yager said. “It’s about more than financial support — it’s about knowing someone believes in your potential. I encourage everyone to donate, not just for the tax break but to give foster youth the opportunity to succeed.”

The scholarship fund, managed by the *Michigan Department of Treasury*, has supported hundreds of students like Yager, covering expenses such as tuition, housing and textbooks.

At any given time, there are approximately 9,500 children in foster care in Michigan who upon reaching adulthood often lack adequate resources to pursue their educational dreams. Former foster youth face significant barriers to education, with only 3% nationwide achieving a college degree. The Fostering Futures Scholarship Trust Fund is committed to changing that statistic.

“Your donation does more than provide financial aid — it offers foster youth a chance to dream big and achieve their goals,” said *Diane Brewer*, executive director of the *Michigan Education Trust (MET)*. “Every contribution helps change lives and builds a brighter future for these deserving young individuals.”

Since its inception in 2012, the program has awarded more than $1.4 million in scholarships, funded entirely through community donations, sponsorships and events.

*Contributions made by Dec. 31 will not only be eligible for state and federal tax breaks for the current tax year but also will have a direct impact in 2025 by *ensuring that more of Michigan’s foster youth have access to the education they deserve. Fostering Futures scholarships now include attendance at any Michigan degree-granting college or university.

To apply or learn more about the Fostering Futures Scholarship, go to [link removed] [ [link removed] ] or call toll-free at 888-4-GRANTS (888-447-2687).



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Facts and Figures
Notice Concerning Inflation-Adjusted Fuel Tax Rate and Applicable to IFTA Motor Carriers 

Pursuant to MCL 207.1008, the Michigan Department of Treasury calculates the motor fuel tax rate. Under the law, the Calendar Year (CY) 2025 motor fuel tax rate is calculated by taking the CY 2024 motor fuel tax rate and adjusting by the lesser of the FY 2024 U.S. inflation rate or 5 percent.

Using the definition of "inflation rate" in MCL 207.1003(3)(l), the inflation rate for the CY 2024 calculation is calculated as follows: (1) The average of the 12 monthly values for October 2022 through September 2023; (2) The average of the 12 monthly values for October 2023 through September 2024; (3) The ratio of (2) divided by (1) minus one is calculated to arrive at the percent change.

Based on data released through October 10, 2024, by the U.S. Department of Labor, the inflation rate for the fiscal year ending September 30, 2024, as measured by the U.S. CPI for all urban consumers, is a *3.1 percent increase.*

Therefore, the CY 2025 motor fuel tax rate equals the CY 2024 motor fuel tax rate of 30.0 cents increased by 3.1 percent: 30.0 cents per gallon x 1.031 = 30.93 cents per gallon.

*Under MCL 207.1008, the motor fuel tax rate, which is to be round up to the nearest 1/10 of a cent, will be in effect on Jan. 1, 2025, is 31.0 cents per gallon.*



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Treasury Taxpayer Update
Treasury Update Newsletter for December 2024 Now Available

The Michigan Department of Treasury has published the December 2024 edition of the Treasury Update newsletter [ [link removed] ]. This quarter, the following updates and rulings are covered.

*Court Decisions on Tax Basis Adjustments*

The Michigan Court of Appeals examined in two cases on whether the taxpayer could increase its basis in assets purchased under the Single Business Tax (SBT) and sold under the Michigan Business Tax or Corporate Income Tax by the amount of depreciation it was required to add back to its tax based under the SBT.

*Temporary Tax Rate for 2023*

The Michigan Supreme Court allowed the Court of Appeals’ decision to stand that the 4.05% individual income tax rate for 2023 is temporary. The rate reverts to 4.25% in Tax Year 2024.

*Taxpayer Seeking to Remove Income from Tax Base Must Seek Approval from Treasury for Alternative Apportionment*

In a Court of Claims case, one of the taxpayer's Unitary Business Group (UBG) members sold its interest in a non-unitary partnership. The sale of its partnership interest generated a capital gain for federal tax purposes. The UBG included the gain on the sale in its 2018 unitary corporate income tax filing and included the gain in the denominator of its apportionment factor. 

*Rescission of Rule Regarding "Food for Human Consumption"*

Effective Sept. 17, 2024, Rule 86 of the Specific Sales and Use Tax Rules has been rescinded from the Michigan Administrative Code. This rule had elaborated on the statutory treatment of "food for human consumption."

*Data Center Reporting*

Data center operators who claimed a sales or use tax exemption for the sale or purchase of data center equipment must submit Form 5726 by Jan. 31.

*Unitary Business Group of Insurance Companies Must File a Combined Premiums Tax Return and Retaliatory Tax Return*

The Court of Appeals held that a unitary business group of insurance companies could not file a combined return for the calculation of premiums tax and related credits under Chapter 12 of the Income Tax Act. Because the retaliatory tax under the Insurance Code is incorporated into Chapter 12 of the corporate income tax, it also must be filed on a combined basis.

*New Tax Credit for Live Organ Donation*

Starting in Tax Year 2025, Michigan taxpayers can take a new tax credit for up to $10,000 in unreimbursed expenses associated with donating a live human organ to another human for transplant.

Details about these stories and more can be found in the latest Treasury Update. [ [link removed] ]



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Happy Holidays

Happy Holidays to All Our Michiganders! Treasury offices will be closed Dec. 24 & 25 and Dec. 31 & Jan. 1. Information and resources are always available on our website at www.michigan.gov/treasury [ [link removed] ].






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