The proposed 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 January 1, 2026, eligible taxpayers can claim a credit against their income tax for all qualified user fees incurred during the tax year. The bill defines a "qualified taxpayer" as a resident of a township with a population between 10,000 and 15,000 in a county with over 1.5 million residents, or individuals whose predominant place of employment is in such a township. Additionally, the bill outlines the definitions of "qualified user fees" and "user fees," which pertain to fees charged for using public service facilities when they are the only means of transportation to and from the township.

The bill also stipulates that the Department of Treasury may require reasonable proof from taxpayers regarding the qualified user fees claimed. If the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded. This legislation aims to provide financial relief to residents in specific townships who rely on public service facilities for transportation, thereby encouraging economic activity and supporting local communities.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847