This bill allows Michigan employers to claim a tax credit equal to 50% of student loan payments they make on behalf of employees who graduated from in-state schools and work for the company. The credit is limited to 20% of the average yearly tuition at a public university in the state for each employee per year. To receive the benefit, employers must submit detailed proof of payments and employee information to the state tax department. The bill also requires that any unused portion of the credit be refunded to the employer rather than carried forward. It is part of a package of related bills that must all pass together to take effect.
SB 967 amends Michigan's income tax law to establish a new state low-income housing tax credit effective for tax years beginning on or after January 1, 2027. This credit is designed for project owners and equity investors who have been allocated funds to support affordable housing developments, allowing them to reduce their state tax liability by the amount of the credit. The bill includes specific rules for claiming the credit, such as requiring the attachment of an allocation form to tax returns, and mandates that the credit be claimed after other tax credits. Additionally, the legislation requires the state department to recapture a portion of the credit from taxpayers if the related federal tax credit is later disallowed or recaptured. If the credit amount exceeds a taxpayer's tax liability for the year, the unused portion can be carried forward for up to 10 years to offset future taxes.
This bill creates a new state tax credit program designed to encourage private investment in community development projects across Michigan. It allows qualified taxpayers to claim a credit equal to 25% of their eligible investment, increasing to 50% for projects involving historic rehabilitation, rural development, or areas with low-income populations. To receive the credit, applicants must demonstrate local support and prove that the project would not happen without the financial incentive, while the state fund reviews applications based on criteria such as economic soundness and the potential to revitalize blighted or vacant properties. The legislation sets annual spending limits for the program, requires projects to be completed within three years, and mandates that at least 20% of the credits go to rural or small-scale initiatives.
HB 5809 amends the State Housing Development Authority Act to update the powers of the Michigan State Housing Development Authority (MSHDA) regarding its coordination with federal programs and the Michigan Strategic Fund. The bill clarifies the authority's ability to collect fees for loans and publications, allowing those funds to be used for corporate purposes unless pledged for bond repayment. It also reinforces the authority's role in encouraging community organizations for housing projects and managing the salvage of usable housing scheduled for demolition. Additionally, the legislation ensures that the authority can make loans to mortgage lenders and purchase securities to support housing development efforts.
HB 5855 amends Michigan's City Utility Users Tax Act to create exemptions for specific businesses and locations. The bill allows qualified start-up businesses to be exempt from utility taxes for up to five years if they first receive a tax credit and receive approval from their city council. Additionally, it extends tax exemptions to businesses operating within designated Renaissance zones and HOPE zones, while explicitly excluding casinos from these benefits. To claim the start-up exemption, businesses must file an affidavit by September 1 and provide proof of their prior tax credit eligibility.
This bill amends the State Housing Development Authority Act to expand the powers of Michigan's State Housing Development Authority. The key changes allow the authority to charge fees for its loans and publications, save usable housing from demolition by funding rehabilitation costs, and make mortgage loans to subsequent property buyers even if they do not meet standard income limits. These provisions directly affect the authority's operations and the people seeking affordable housing assistance in the state.
This bill creates a state income tax credit for owners of mobile home parks who sell their property to current residents or resident associations starting in 2026. To receive the credit, which equals 15% of the sale price, the seller must submit proof that they provided required notice to potential buyers and include the final settlement statement with their tax return. The credit can be claimed by individual owners or by members of flow-through entities that own the park, but any unused portion of the credit cannot be refunded. The legislation also clarifies that the credit only applies to sales made to people already living in the park or to their governing cooperative.
SB 995 proposes to create a new state tax credit for Michigan employers starting in 2026, allowing them to reduce their income tax liability by 50% of the federal Work Opportunity Tax Credit they would have received. This credit is available only to businesses that hire Michigan residents who are certified by the state unemployment agency as members of specific targeted groups facing employment barriers. The bill specifies that any unused portion of the credit cannot be refunded if it exceeds the employer's tax bill, and it includes provisions for flow-through entities to claim credits based on their share of business income.
SB 923 amends the State Housing Development Authority Act to update the powers of the Michigan Housing Development Authority, specifically clarifying its ability to set standards for housing projects and manage fees related to loans and publications. The bill also adds new provisions to coordinate with the Michigan Strategic Fund and adjust eligibility criteria for credits under the Community Development Tax Credit Program. By modifying existing statutes, the legislation aims to streamline how the authority operates and interacts with other state financial programs to support housing initiatives.
This bill allows certain Michigan nonprofit organizations to claim a tax credit against state income tax withholdings for wages paid to qualified employees. The credit applies to tax years starting on or after January 1, 2026, and is limited to 50% of the amount the employer would have received under a federal work opportunity credit. To qualify, employees must be Michigan residents certified by the state unemployment agency as members of a targeted group, and the credit cannot be refunded if it exceeds the employer's withholding tax liability. The legislation also requires that any unused federal credits from previous years be excluded from the calculation. The bill will only take effect if a companion bill, SB 995, is also passed into law.
