Bill > HB5272

This bill amends the Michigan Income Tax Act to modify property tax credits for various groups, including senior citizens, disabled veterans, and their widows or widowers. The bill makes several key changes to how property tax credits are calculated, primarily focusing on adjusting the percentage of property taxes or rental expenses that can be claimed as a credit against state income tax. Notably, for tax years beginning on or after January 1, 2026, disabled veterans or their widows/widowers who rent or lease a homestead will be eligible for a new credit equal to 23% of gross rent paid (or 10% if subject to a service charge, with potential for a higher percentage if documented). The bill removes previous language that distinguished between tax years before and after 2018, simplifying the credit calculation. It also clarifies that only one claimant per household can claim the credit in a tax year, with an exception for blind spouses filing jointly. The bill maintains existing provisions that allow credits to be proportionally adjusted for partial-year occupancy and prohibit claims made primarily to receive tax benefits. The legislation is tied to another bill and will only take effect if that companion bill is also enacted into law.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5272