Bill > HB6271

This bill proposes a change to Michigan’s Income Tax Act of 1967 by allowing individual taxpayers to claim a state income tax credit for the cost of local building permits associated with constructing a new single-family home. Starting with the 2027 tax year, individuals can receive a tax credit—which is a dollar-for-dollar reduction of the income taxes they owe—equal to the amount they paid for those local permits, up to a maximum of $2,500 per year. To qualify, taxpayers may be required to provide reasonable proof of their expenses to the state department handling taxes. Furthermore, if the credit amount is greater than the total income tax the person owes for that year, the state will pay the remaining unused balance back to the taxpayer as a cash refund.