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.