Bill Text: MI HB4813 | 2019-2020 | 100th Legislature | Introduced
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: (Introduced - Dead) 2019-06-20 - Introduced By Representative Kyra Harris Bolden [HB4813 Detail]
Download: Michigan-2019-HB4813-Introduced.html
HOUSE BILL No. 4813
July 18, 2019, Introduced by Rep. Bolden 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, 2020 and before
January 1, 2025, 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 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 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 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 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) "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 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.
