Bill > SB0345

This bill amends Michigan's income tax act to increase and modify the homestead property tax credit by making several key changes. The bill raises the taxable value cap for homestead property from $135,000 to $160,700 through the 2024 tax year, with annual adjustments based on the Consumer Price Index starting in 2025. For renters, the bill increases the percentage of gross rent used to calculate the tax credit from 20% to 23% before 2025, and from 23% to 25% after 2024. The bill also significantly increases the minimum total household resources threshold for claiming the credit, raising it from $51,000 to $70,700 for single filers and from $51,000 to $141,400 for joint filers in the 2025 tax year. Additionally, the maximum annual credit is increased from $1,500 to $2,000, with future annual adjustments based on the Consumer Price Index. The bill makes several technical language updates, such as replacing "person" with "claimant" and modernizing some terminology. These changes aim to provide greater property tax relief for homeowners and renters by expanding the eligibility and amount of the tax credit, with the modifications applying to tax years beginning on or after January 1, 2025.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0345