Bill Text: MI SB0184 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Individual income tax; credit; credit for the purchase of certain housing and for certain home modifications; establish. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 277.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2017-07-12 - Referred To Committee On Tax Policy [SB0184 Detail]
Download: Michigan-2017-SB0184-Engrossed.html
SB-0184, As Passed Senate, June 28, 2017
SUBSTITUTE FOR
SENATE BILL NO. 184
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding section 277.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 277. (1) Subject to the limitations under this section,
for tax years that begin on and after January 1, 2018 and before
January 1, 2023, a taxpayer that purchases a qualified principal
residence or retrofits or hires someone to retrofit the taxpayer's
principal residence or the principal residence of a qualifying
relative, provided that the retrofitting of that principal
residence is designed to improve accessibility or provide
visitability, may claim a credit against the tax imposed by this
part in an amount equal to 4.0% of the total purchase price paid
for the qualified principal residence or 50% of the total amount
spent for the retrofitting of the principal residence. The amount
of the credit allowed under this section shall not exceed $5,000.00
for the purchase of a principal residence or for the retrofitting
of a principal residence. A taxpayer shall not claim more than 1
credit for the same principal residence.
(2) To qualify for the credit under this section, a taxpayer
shall request certification from the Michigan state housing
development authority in a form and manner as prescribed by the
Michigan state housing development authority no later than January
10 of the tax year immediately succeeding the tax year for which
the credit is to be claimed. The Michigan state housing development
authority shall approve or deny all requests for certification and
issue the certificates no later than February 10 of the same tax
year. A taxpayer shall not claim a credit under this section unless
the Michigan state housing development authority has issued a
certificate to the taxpayer. The taxpayer shall attach the
certificate to the annual return filed under this part on which a
credit under this section is claimed. The certificate required
under this subsection shall specify all of the following:
(a) The purchase price of the qualified principal residence or
the total amount expended to retrofit the principal residence into
a qualified principal residence during the tax year by the
taxpayer.
(b) The total amount of the credit under this section that the
taxpayer is allowed to claim for the tax year.
(3) The total amount of credits that the Michigan state
housing development authority may certify under this section shall
not exceed $1,000,000.00 in any 1 tax year. Each year the Michigan
state housing development authority shall allocate $500,000.00 in
credits for the purchase of qualified principal residences and
$500,000.00 in credits for the retrofitting of principal
residences. If the amount of tax credits approved in a single tax
year for the purchase of qualified principal residences is less
than $500,000.00, the director of the Michigan state housing
development authority shall allocate the remaining balance of those
tax credits for the retrofitting of principal residences. If the
amount of tax credits approved in a single tax year for the
retrofitting of principal residences is less than $500,000.00, the
director of the Michigan state housing development authority shall
allocate the remaining balance of those tax credits for the
purchase of qualified principal residences. In the event that the
requests for certification for the tax credit exceed the amount
allocated by the director for that tax year, the Michigan state
housing development authority shall issue the tax credits pro rata
based upon the amount of tax credits approved for each taxpayer and
the amount of tax credits allocated by the director.
(4) The taxpayer shall claim the credit under this section for
the same tax year in which the qualified principal residence was
purchased or that the retrofitting of the principal residence was
completed. If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
portion of the credit that exceeds the tax liability of the
taxpayer for the tax year shall not be refunded but may be carried
forward to offset tax liability under this part in subsequent tax
years for a period not to exceed 7 tax years or until used up,
whichever occurs first.
(5) As used in this section:
(a) "Accessibility" means that the principal residence is
designed to provide the taxpayer, an individual who is related to
the taxpayer or who resides with the taxpayer, or a qualifying
relative, who has 1 or more physical limitations in daily life
activities as verified by that individual's physician, with the
ability to enter, exit, and use the property with and without
assistance. For purposes of this subdivision, an individual is
related to the taxpayer if that individual is a spouse, brother or
sister, whether of the whole or half blood or by adoption,
ancestor, or lineal descendant of that individual or related
person.
(b) "Michigan state housing development authority" means the
authority created under the state housing development authority act
of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.
(c) "Physician" means that term defined under section 17001 or
17501 of the public health code, 1978 PA 368, MCL 333.17001 and
333.17501.
(d) "Principal residence" means property exempt as a principal
residence under section 7cc of the general property tax act, 1893
PA 206, MCL 211.7cc.
(e) "Qualified principal residence" means a principal
residence that is designed to improve accessibility or provide
visitability.
(f) "Qualifying relative" means a son or daughter of the
taxpayer, either as a natural child, stepchild, foster child, or
adopted child.
(g) "Visitability" means a principal residence designed to
include all of the following:
(i) At least 1 zero-step entrance.
(ii) At least 1 full or half bathroom on the main floor.
(iii) All doorways on the main floor have a minimum of 32
inches of clear passage space.
