The proposed bill amends the Income Tax Act of 1967 by adding a new section, Sec. 282, which introduces a tax credit for the 2025 tax year specifically for qualified taxpayers affected by severe winter weather and ice storms. This credit allows eligible individuals to claim an amount equal to their qualified expenses incurred for cleaning up, repairing, restoring, or rebuilding their homes, properties, or businesses within the designated emergency area, capped at $5,000. 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.

Additionally, the bill 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. The bill defines key terms such as "qualified declaration," which refers to the state of emergency declared by the governor, and "qualified expenses," which encompass costs related to power outages, road impassability, and damages resulting from the severe weather. Overall, this legislation aims to provide financial relief to residents impacted by the winter storm in 2025.

Statutes affected:
House Introduced Bill: 206.1, 206.847