Bill Text: MI SB0360 | 2021-2022 | 101st Legislature | Engrossed
Bill Title: Individual income tax: credit; employer-assisted housing credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding secs. 279 & 678. TIE BAR WITH: SB 0361'21
Spectrum: Slight Partisan Bill (Democrat 13-8)
Status: (Engrossed - Dead) 2021-06-17 - Referred To Committee On Local Government And Municipal Finance [SB0360 Detail]
Download: Michigan-2021-SB0360-Engrossed.html
Substitute For
SENATE BILL NO. 360
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 279 and 678.
the people of the state of michigan enact:
Sec. 279. (1) For tax years that begin on and after January 1, 2021, a taxpayer that makes an eligible contribution to a certified housing impact fund or a taxpayer who is an employer that offers its employees the option to participate in a qualified employer-assisted housing project located in this state that assists its employees in securing affordable housing near the workplace may claim a credit against the tax imposed by this part in an amount equal to 50% of the total eligible contributions made during the tax year to a certified housing impact fund and 50% of the total costs incurred to implement and maintain a qualified employer-assisted housing project for its employees. However, if the taxpayer is a member of the flow-through entity that made the eligible contribution or that implemented the qualified employer-assisted housing project, then the taxpayer may claim credit against the member's tax liability under this part based on the member's proportionate share of ownership or an alternative method approved by the department.
(2) To claim the credit under this section for an employer-assisted housing project, the employer, in a form and manner as prescribed by the Michigan state housing development authority pursuant to section 22e of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1422e, shall submit an application and an outline of its employer-assisted housing project to the authority for approval. If the authority approves the employer-assisted housing project, the authority shall notify the employer that the project qualifies for the credit under this section. If an application is denied under this subsection, the applicant may file an appeal in a form and manner as prescribed by the authority or subsequently reapply for the same employer-assisted housing project or for another employer-assisted housing project, or both. After the qualified employer-assisted housing project is complete and has been implemented, the employer shall provide the authority with the costs incurred to implement and maintain that qualified employer-assisted housing project during the tax year and the number of qualified employees who have participated in the qualified employer-assisted housing project during the tax year and request certification of its expenditures and the amount of the credit that may be claimed for that tax year.
(3) To claim a credit under this section for eligible contributions made to a certified housing impact fund during the tax year, the taxpayer shall submit reasonable proof of the eligible contributions made and to which certified housing impact fund during the tax year for which a credit is claimed under this section and request certification of those eligible contributions.
(4) A taxpayer shall not claim a credit under this section unless the 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 must state all of the following:
(a) The name of the taxpayer.
(c) The amount of eligible contributions made to each certified housing impact fund for the designated tax year, the costs incurred to implement and maintain the qualified employer-assisted housing project for the designated tax year, and the total amount of the credit that may be claimed for the designated tax year. For contributions made and costs incurred by a taxpayera flow-through entity of which the taxpayer is a member, the certificate shall separately state the amount of the credit that each taxpayer who is a member of the flow-through entity is allowed to claim for the designated tax year and that amount shall be based on each member's proportionate share of ownership in that flow-through entity or an alternative method approved by the department.
(d) The taxpayer's federal employer identification number or the Michigan department of treasury number assigned to the taxpayer.
(5) If the credit allowed under this section for the tax year and any unused carryforward of the credit allowed by this section exceed the tax liability of the taxpayer for the tax year, that portion that exceeds the tax liability of the taxpayer shall not be refunded but may be carried forward to offset tax liability in subsequent tax years for 10 years or until used up, whichever occurs first.
(6) As used in this section:
(a) "Adjusted household income" means that term as defined in R 125.101 of the Michigan Administrative Code.
(b) "Certified housing impact fund" means a trust fund certified by the Michigan state housing development authority under section 22e of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1422e, that dedicates and restricts its funds to invest in local housing projects within this state and to provide affordable housing within this state.
(c) "Eligible contribution" means any promissory note, grant, or payment of money or property of any kind or value, approved by the authority.
(d) "Michigan state housing development authority" or "authority" means the authority created under the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.
(e) "Qualified employee" mean an employee whose adjusted household income is not more than 120% of the area median income, as determined by the authority.
(f) "Qualified employer-assisted housing project" means an employer-assisted housing project that is approved by the Michigan state housing development authority under section 22e of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1422e, and implemented and maintained by the employer to offer down-payment assistance, reduced-interest mortgages, mortgage guarantee programs, rental subsidies, individual development account savings plans, or any other similar type of assistance approved by the authority, to its qualified employees to assist in securing affordable housing near the workplace.
Sec. 678. (1) For tax years that begin on and after January 1, 2021, a taxpayer that makes an eligible contribution to a certified housing impact trust fund or that offers its employees the option to participate in a qualified employer-assisted housing project that assists its employees in securing affordable housing near the workplace may claim a credit against the tax imposed by this part in an amount equal to 50% of the total eligible contributions made during the tax year to a certified housing impact fund and 50% of the total costs incurred to implement and maintain a qualified employer-assisted housing projects for its employees.
(2) To claim the credit under this section for an employer-assisted housing project, the taxpayer, in a form and manner as prescribed by the Michigan state housing development authority pursuant to section 22e of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1422e, shall submit an application and an outline of its employer-assisted housing project to the authority for approval. If the authority approves the employer-assisted housing project, the authority shall notify the employer that the project qualifies for the credit under this section. If an application is denied under this subsection, the applicant may file an appeal in a form and manner as prescribed by the authority or subsequently reapply for the same employer-assisted housing project or for another employer-assisted housing project, or both. After the qualified employer-assisted housing project is complete and has been implemented, the employer shall provide the authority with the costs incurred to implement and maintain that qualified employer-assisted housing project during the tax year and the number of qualified employees who have participated in the qualified employer-assisted housing project during the tax year and request certification of its expenditures and the amount of the credit that may be claimed for that tax year.
(3) To claim a credit under this section for eligible contributions made to a certified housing impact fund during the tax year, the taxpayer shall submit reasonable proof of the eligible contributions made and to which certified housing impact fund during the tax year for which a credit is claimed under this section and request certification of those eligible contributions.
(4) A taxpayer shall not claim a credit under this section unless the 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 must state all of the following:
(a) The name of the taxpayer.
(b) The name or project number assigned to the qualified employer-assisted housing project or the name of each certified housing impact fund, or both, if applicable.
(c) The amount of eligible contributions made to each certified housing impact fund for the designated tax year, the costs incurred to implement and maintain the qualified employer-assisted housing project for the designated tax year, and the total amount of the credit that may be claimed for the designated tax year.
(d) The taxpayer's federal employer identification number or the Michigan department of treasury number assigned to the taxpayer.
(5) If the credit allowed under this section for the tax year and any unused carryforward of the credit allowed by this section exceed the tax liability of the taxpayer for the tax year, that portion that exceeds the tax liability of the taxpayer shall not be refunded but may be carried forward to offset tax liability in subsequent tax years for 10 years, or until used up, whichever occurs first.
(6) As used in this section:
(a) "Adjusted household income" means that term as defined in R 125.101 of the Michigan Administrative Code.
(b) "Certified housing impact fund" means a trust fund certified by the Michigan state housing development authority under section 22e of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1422e, that dedicates and restricts its funds to invest in local housing projects within this state and to provide affordable housing within this state.
(c) "Eligible contribution" means any promise, grant, or payment of money or property of any kind or value, including a promise to pay, approved by the authority.
(d) "Michigan state housing development authority" or "authority" means the authority created under the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.
(e) "Qualified employee" means an employee whose adjusted household income is not more than 120% of the area median income as determined by the authority.
(f) "Qualified employer-assisted housing project" means an employer-assisted housing project that is approved by the Michigan state housing development authority under section 22e of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1422e, and implemented and maintained by the employer to offer down-payment assistance, reduced-interest mortgages, mortgage guarantee programs, rental subsidies, individual development account savings plans, or any other similar type of assistance approved by the authority, to its qualified employees.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 361 of the 101st Legislature is enacted into law.
