The bill amends the Income Tax Act of 1967 by adding a new section, Sec. 282, which introduces a tax credit for taxpayers constructing new single-family residential dwellings. Starting from tax years beginning on January 1, 2027, taxpayers can claim a credit for the costs incurred for local building permits, with a maximum credit limit of $2,500 per tax year. The Department of Revenue may require taxpayers to provide reasonable proof of the building permit expenses claimed.

Additionally, the bill stipulates that if the credit amount exceeds the taxpayer's tax liability for the year, the excess portion of the credit will be refunded to the taxpayer. This provision aims to encourage residential construction by alleviating some of the financial burdens associated with obtaining necessary permits.

Statutes affected:
House Introduced Bill: 206.1, 206.847