The bill amends the Income Tax Act of 1967 by adding a new section, Sec. 281, which introduces a tax credit for qualified taxpayers starting from tax years beginning on or after January 1, 2026. This credit is applicable for all qualified user fees incurred during the tax year. The Department of Treasury may require reasonable proof from taxpayers regarding the user fees claimed for the credit. If the credit exceeds the taxpayer's tax liability, the excess amount will be refunded.

The bill defines several key terms, including "qualified taxpayer," which refers to residents of specific townships or individuals whose predominant place of employment is in those townships, and "qualified user fees," which are fees incurred when a public service facility is the only means of transportation to and from the township. Additionally, it clarifies that "user fees" are charges for operating a vehicle on a public service facility as defined in existing law.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847