Bill > HB5275

This bill amends the Michigan Income Tax Act to update property tax credits and definitions related to disabled veterans and income thresholds. Specifically, the bill revises the definition of "disabled veteran" to align with the General Property Tax Act and changes how total household resources are calculated for eligibility. The bill increases the taxable value cap for homestead property tax credits from $135,000 to $165,400 through 2025 and provides for annual adjustments based on the Consumer Price Index thereafter. For rental property, the bill maintains the 23% of gross rent calculation for tax credits and adjusts various income thresholds, such as raising the minimum total household resources amount from $51,000 to $62,500 for the 2025 tax year. Additionally, the bill increases the maximum annual property tax credit from $1,500 to $1,900 per year starting in 2025, with provisions for future annual adjustments. The changes aim to provide more favorable tax treatment for veterans, seniors, and homeowners by expanding eligibility and increasing credit amounts to account for inflation and rising living costs.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5275