This bill amends the Income Tax Act of 1967 by adding a new section, Sec. 282, which establishes a tax credit for qualified taxpayers affected by severe winter weather and ice storms in 2025. Specifically, it allows these taxpayers to claim a credit for qualified expenses incurred to clean up, repair, restore, or rebuild their homes, properties, or businesses within the designated emergency area, with the credit amount capped at either the total qualified expenses or $5,000, whichever is less. To qualify, taxpayers must provide reasonable proof of their expenses, including their federal employer identification number or Michigan treasury number, their address within the emergency area, and a description of the impact of the winter weather.

The bill also outlines provisions for taxpayers who are members of flow-through entities, allowing them to claim credits based on their share of business income. If the credit exceeds the taxpayer's tax liability, the excess amount will be refunded. Definitions are provided for key terms such as "qualified declaration," which refers to the state of emergency declared by the governor, and "qualified expenses," which include costs related to power outages, road impassability, and damages resulting from the severe weather.

Statutes affected:
Substitute (H-1): 206.1, 206.847
House Introduced Bill: 206.1, 206.847