Individual income tax: credit; credit for certain renovations made to a principal residence for senior citizens; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 277.
Impact
The implementation of this bill is expected to impact state tax codes directly, providing tangible financial benefits to senior citizens seeking to adapt their homes for their needs. The proposed tax credit signifies a broader recognition of the challenges faced by older adults, particularly in ensuring their living spaces remain safe and accessible. The Michigan Department of Health and Human Services is tasked with creating and publishing a list of renovations that qualify for the credit, thus further aiding seniors in identifying eligible financial assistance resources.
Summary
House Bill 5632 aims to amend the Income Tax Act of 1967 in Michigan by introducing a tax credit for senior citizens. Beginning in tax years after January 1, 2024, seniors who make qualified expenditures to renovate or update their principal residences, or the residences of senior family members, can claim a credit of $250 against their state tax liability. The bill explicitly defines 'qualifying expenditures' to include various modifications aimed at enhancing mobility or safety for seniors. This initiative is designed to support the aging population by easing the financial burden associated with home renovations.
Contention
While supporters view HB5632 as a positive step toward assisting seniors, potential points of contention could arise regarding the specifics of what constitutes 'qualified expenditures' and the burden placed on state agencies to manage and oversee this new credit system. Questions may also be raised about the potential fiscal impact of the tax credit on state revenues and whether it adequately meets the needs of the senior population. Additionally, issues concerning eligibility for family members of seniors might prompt discussions on the definition and breadth of the term 'family member,' potentially leading to varying interpretations.
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.
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