The proposed bill amends the Income Tax Act of 1967 by introducing a new tax credit program aimed at incentivizing qualified taxpayers to invest in specific properties. Under the new Section 279, taxpayers can claim a credit of 25% of their eligible investments, with the possibility of a 50% credit for projects that involve the rehabilitation of historic resources, rural projects, or those situated in low-to-moderate income (LMI) census tracts. The bill establishes a structured application process requiring local support and project feasibility, and it sets a maximum credit limit of $10 million per project, with an overall cap of $200 million in credits available each year. Additionally, it mandates annual reporting on approved projects and total investments.

The legislation also introduces new definitions and criteria for eligible properties, including historic resources, blighted properties, and functionally obsolete properties. It specifies that at least 20% of the credits must be allocated to rural or small projects, with "small projects" defined as those with eligible investments of $10 million or less. The bill allows for the monetization and assignment of credits, particularly benefiting nonprofit corporations, and includes provisions for carrying forward unused credits into future tax years. Importantly, the enactment of this bill is contingent upon the passage of two other specified bills from the 103rd Legislature, ensuring a coordinated approach to property rehabilitation and investment in Michigan.

Statutes affected:
House Introduced Bill: 206.1, 206.847