This bill directs a specific portion of Michigan's individual income tax revenue to the Workforce Development HOPE Zone Fund. The funds are designated for employees working within designated HOPE zones and are intended to be distributed to qualified workforce development organizations through formal agreements. The legislation defines key terms such as "HOPE zone" and "qualified workforce development organization" by referencing existing state laws. The bill will only take effect if it is passed alongside a companion bill, HB 5852.
This bill creates a state income tax credit for owners of mobile home parks who sell their property to current residents or resident associations starting in 2026. To receive the credit, which equals 15% of the sale price, the seller must submit proof that they provided required notice to potential buyers and include the final settlement statement with their tax return. The credit can be claimed by individual owners or by members of flow-through entities that own the park, but any unused portion of the credit cannot be refunded. The legislation also clarifies that the credit only applies to sales made to people already living in the park or to their governing cooperative.
HB 5973 extends the tax deduction for contributions to Michigan's First-Time Home Buyer Savings Account, allowing eligible individuals to lower their state taxable income when they save for a home. The bill amends the state's income tax law to ensure this specific financial benefit remains available for future tax years. By maintaining this provision, the legislation directly affects Michigan residents who utilize the savings account program to purchase their first home.
SB 995 proposes to create a new state tax credit for Michigan employers starting in 2026, allowing them to reduce their income tax liability by 50% of the federal Work Opportunity Tax Credit they would have received. This credit is available only to businesses that hire Michigan residents who are certified by the state unemployment agency as members of specific targeted groups facing employment barriers. The bill specifies that any unused portion of the credit cannot be refunded if it exceeds the employer's tax bill, and it includes provisions for flow-through entities to claim credits based on their share of business income.
This bill allows certain Michigan nonprofit organizations to claim a tax credit against state income tax withholdings for wages paid to qualified employees. The credit applies to tax years starting on or after January 1, 2026, and is limited to 50% of the amount the employer would have received under a federal work opportunity credit. To qualify, employees must be Michigan residents certified by the state unemployment agency as members of a targeted group, and the credit cannot be refunded if it exceeds the employer's withholding tax liability. The legislation also requires that any unused federal credits from previous years be excluded from the calculation. The bill will only take effect if a companion bill, SB 995, is also passed into law.
This bill creates the Helping Opportunity Prosper Everywhere (HOPE) Zone Act to support economic development and neighborhood revitalization in impoverished areas of Michigan. It establishes a process for designating specific neighborhoods as HOPE zones based on income levels or poverty rates, which then qualify for tax deductions, credits, and exemptions for participating businesses. A key feature of the act is a "withholding tax capture" mechanism that allows businesses operating within these zones to contribute income tax withheld from employee wages to a dedicated fund, which is intended to support workforce development programs and local community initiatives. The legislation also defines the roles of various organizations, such as qualified neighborhood associations and workforce development groups, in managing these zones and distributing funds.
This bill proposes changes to Michigan's individual income tax law by adjusting the income limits for the property tax credit and the homestead property tax credit. Specifically, it seeks to increase the income thresholds that determine eligibility for these credits, which are financial benefits designed to help homeowners offset their property tax bills. The legislation directly affects Michigan residents who claim these credits on their state tax returns, as it would alter the income levels required to qualify for them. By amending specific sections of the state's Income Tax Act, the bill aims to modify how much income a taxpayer can earn while still receiving these tax reductions.
This bill creates a new state tax credit program to encourage private investment in community development projects across Michigan. It allows taxpayers who invest in eligible properties, such as historic sites, rural areas, or low-income census tracts, to receive a credit equal to 25% to 50% of their investment costs. To qualify, applicants must demonstrate local support, show the project is financially sound, and prove it will revitalize blighted or vacant areas. The program includes strict timelines for securing financing and completing construction, with a total annual funding cap of $200 million that must be at least 30% allocated to housing projects.
HB 5806 creates a new state tax credit for individuals and businesses that invest in affordable housing projects in Michigan starting in 2027. The bill allows these investors to reduce their income tax by a specific amount tied to their share of the project, provided they receive approval from the State Housing Development Authority. It also establishes rules for how investors must report the credit, handle situations where federal tax credits are lost, and carry forward any unused credit for up to 10 years.
SB 966 amends the State Housing Development Authority Act of 1966 to add new powers for the State Housing Development Authority in Michigan. The bill allows the authority to establish and collect fees for its publications, loans, and related services, and to use the resulting income for its corporate purposes. These funds are not considered interest and can be used to support the authority's housing initiatives, provided they are not pledged for bond repayment. The legislation directly affects the State Housing Development Authority by expanding its financial and operational capabilities to better serve housing needs across Michigan.
