The proposed bill amends the Income Tax Act of 1967 by adding a new section that allows taxpayers in Michigan to claim a tax credit for fostering animals. Starting from tax years beginning on or after January 1, 2026, taxpayers who foster one or more animals in their personal residence for a qualified organization can receive a credit of $50 for each animal fostered for at least seven days. If the same animal is fostered for more than 30 days, an additional $50 credit can be claimed for each subsequent 30-day period, with a maximum of five animals eligible for credit in a single tax year. To qualify, taxpayers must provide verification from the fostering organization regarding the agreement and duration of the foster care.

Additionally, beginning with the 2027 tax year, the credit amount will be adjusted annually based on the percentage increase in the United States Consumer Price Index from the previous year, rounded to the nearest $5 increment. The bill specifies that any credit exceeding the taxpayer's tax liability cannot be refunded. Definitions for terms such as "qualified organization," "animal control shelter," and "United States Consumer Price Index" are also included to clarify eligibility and the scope of the bill.

Statutes affected:
House Introduced Bill: 206.1, 206.847