Bill Text: MI HB4719 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Individual income tax; deductions; tax credit for certain home modifications; establish. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 277.
Spectrum: Partisan Bill (Democrat 19-0)
Status: (Introduced - Dead) 2015-06-17 - Printed Bill Filed 06/17/2015 [HB4719 Detail]
Download: Michigan-2015-HB4719-Introduced.html
HOUSE BILL No. 4719
June 16, 2015, Introduced by Reps. Moss, Love, Wittenberg, Greig, Faris, Durhal, Darany, Guerra, Singh, Dillon, Rutledge, Talabi, Neeley, Hoadley, Plawecki, Schor, Derek Miller, Pagan and Hovey-Wright and referred to the Committee on Tax Policy.
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, 2016, a taxpayer
that purchases a new residence or retrofits or hires someone to
retrofit an existing residence, provided that such new residence or
the retrofitting of that existing residence is designed to improve
accessibility, provide universal visitability, and meets the
eligibility requirements established by guidelines developed by the
Michigan state housing development authority, 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 a new residence or 50% of the
total amount spent for the retrofitting of an existing residence.
The amount of the credit allowed under this section shall not
exceed $5,000.00 for the purchase of each new residence or for the
retrofitting of an existing residence. A credit is not allowed
under this section for the purchase or retrofitting of residential
rental property.
(2) To qualify for the credit under this section, a taxpayer
shall request certification from the Michigan state housing
development authority no later than February 28 of the tax year
immediately succeeding the tax year for which the credit is to be
claimed. 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 total amount of the purchase price of the new
residence or the total amount expended to retrofit the existing
residence during the tax year by the taxpayer.
(b) The total amount expended for the purchase of each new
residence or the total amount expended to retrofit each existing
residence if different from the previous amount.
(c) The total amount of the credit under this section that the
taxpayer is allowed to claim for the designated 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 new residences and $500,000.00 in
credits for the retrofitting of existing residences. If the amount
of tax credits approved in a single tax year for the purchase of
new 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
existing residences. If the amount of tax credits approved in a
single tax year for the retrofitting of existing 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 new 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 residence was purchased or that the
retrofitting of the 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.
(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) "Visitability" means a 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.
