MI
Michigan House Bill HB4088

Michigan 2025-2026 Regular Session

Michigan House Bill HB4088

Introduced
2/18/25  

Caption

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).

Impact

If enacted, HB 4088 will have significant implications for state tax laws, particularly concerning how property taxes are assessed and credited. The increased cap on homestead eligibility may allow more property owners to benefit from tax relief, potentially boosting the financial stability of low- to middle-income families. Additionally, the annual adjustments linked to the House Price Index could help ensure that tax credits remain relevant to economic conditions, particularly in regions facing rapid property value increases.

Summary

House Bill 4088 seeks to amend the Income Tax Act of 1967 (PA 281) to modify existing property tax credits available to individuals, particularly focusing on adjustments to the taxable value cap for homestead eligibility. The bill aims to increase the maximum taxable value from $135,000 to $196,500, starting in 2026 and to adjust this threshold annually based on the increase in the United States House Price Index. This change is intended to make property tax credits more accessible to a broader range of homeowners as property values rise over time.

Contention

However, the bill has sparked discussions regarding potential disparities in tax relief effectiveness, especially for renters. While it includes provisions for rental assistance based on gross rent, there are concerns about the adequacy of these measures compared to the benefits offered to homeowners. There may also be apprehensions regarding how these adjustments impact overall tax revenue, as broader eligibility for credits could shift the tax burden or affect funding for public services. Furthermore, the measures against discrimination in rent practices highlight the ongoing concern about fair housing practices in connection to credit claims.

Latest HB4088 Activity

Companion Bills

No companion bills found.

Similar Bills

MI HB4894

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: HB 4895'23

MI SB0454

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0455'23

MI SB0095

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23

MI HB4724

Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).

MI HB4767

Individual income tax: income; certain references in the income tax act; make gender neutral. Amends secs. 311, 504 & 522 of 1967 PA 281 (MCL 206.311 et seq.). TIE BAR WITH: HJR F'23

KS SB300

House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.

KS HB2074

Including homestead renters as eligible to participate in certain homestead property tax refund claims.

KS SB453

Excluding social security payments from household income and expanding eligibility related to increased property tax homestead property tax refund claims.