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.