Michigan-2015-SB0395-Engrossed

SB-0395, As Passed Senate, March 23, 2016

SUBSTITUTE FOR

SENATE BILL NO. 395

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, 2017 and before

January 1, 2022, a taxpayer that purchases a qualified principal

residence or retrofits or hires someone to retrofit the taxpayer's

principal residence, provided that the retrofitting of the

taxpayer's 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 taxpayer's 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 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 act 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 taxpayer's 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 taxpayer's 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 act 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 residence is designed to

provide the taxpayer or an individual who is related to the

taxpayer or who resides with the taxpayer, 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.

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) "Visitability" means a residence designed to include all

of the following: