The bill amends the existing law regarding the imposition and collection of taxes on net income and certain business activities in Michigan, specifically introducing provisions for a housing opportunity tax credit for qualified taxpayers. Starting from tax years beginning on or after January 1, 2027, qualified taxpayers can claim this credit against their tax liability based on amounts listed in an allocation report for qualified projects. The bill outlines the requirements for claiming the credit, including the necessity of attaching an eligibility statement to the annual tax return and stipulates that if a federal low-income housing tax credit is recaptured or disallowed, a corresponding portion of the housing opportunity tax credit must also be recaptured.

Additionally, the bill specifies that any adjustments to the housing opportunity tax credit due to updated allocation reports will require affected taxpayers to file amended returns. The credit must be claimed after all other nonrefundable credits, and any excess credit can be carried forward for up to ten years. The definitions of key terms such as "qualified taxpayer," "allocation report," and "housing opportunity tax credit" are also provided, ensuring clarity in the application of the new provisions. The enactment of this bill is contingent upon the passage of two other specified bills from the 103rd Legislature.

Statutes affected:
Substitute (H-1): 206.1, 206.847
Substitute (H-3): 206.1, 206.847
Substitute (S-1): 206.1, 206.847
House Introduced Bill: 206.1, 206.847
As Passed by the House: 206.1, 206.847
As Passed by the Senate: 206.1, 206.847
House Concurred Bill: 206.1, 206.847
Public Act: 206.1, 206.847
House Enrolled Bill: 206.1, 206.847