Individual income tax: credit; credit for certain qualified home improvements; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 253.
The bill is anticipated to positively affect homeowners who engage in improvements that meet specified criteria. By offering a tax credit, the bill encourages investment in residential properties, which can lead to an overall enhancement of neighborhood aesthetics and possibly elevate property values within communities. This could also stimulate economic activity in the home improvement sector by increasing demand for construction and renovation services.
House Bill 5808 proposes an amendment to the Income Tax Act of 1967, by adding section 253, which introduces a new tax credit for individuals making qualified home improvements to their principal residences. Starting from January 1, 2025, taxpayers can claim a credit equivalent to 10% of their incurred expenses for qualified home improvements, or a maximum of $3,000, whichever amount is less. This initiative is aimed at incentivizing home renovations that can enhance property value, prolong the usability of properties, or increase energy efficiency.
Though the bill aims to provide financial relief and promote home improvements, it is likely to be met with some contention among stakeholders. Critics may argue about the potential implications of the tax credit on state revenue, questioning whether the state can afford the budgetary impacts of such credits in the long term. Additionally, there could be debates about the definitions of 'qualified home improvements' and whether the proposed benefits will adequately reach those who need assistance the most.