Individual income tax: property tax credit; taxable value cap on homestead eligibility for credit; increase and modify adjustment factor. Amends sec. 520 of 1967 PA 281 (MCL 206.520).

HB 4088 adjusts the property tax credit for Michigan homeowners by raising the taxable value cap for homestead eligibility from $135,000 (through 2021) to $196,500 starting in 2026. It requires annual adjustments to this cap based on the U.S. Consumer Price Index (CPI), rounded to the nearest $100, to maintain its real value over time. The bill directly affects homeowners claiming the property tax credit who own homestead properties with taxable values exceeding the new cap. This change modifies the eligibility threshold under Section 520 of Michigan's Income Tax Act, ensuring the cap keeps pace with inflation.