HOUSING CONTRIBUTIONS; TAX CREDIT                                                             S.B. 360 (S-1) & 361 (S-1):

                                                                                                                                                                                                      SUMMARY OF BILL

                                                                                                                                                                        REPORTED FROM COMMITTEE

Senate Bill 360 (Substitute S-1 as reported)

Senate Bill 361 (Substitute S-1 as reported)

Sponsor:   Senator Roger Victory

Committee: Economic and Small Business Development

CONTENT

Senate Bill 360 (S-1) would amend the Income Tax Act to do the following:

 --       Allow, for tax years that begin on and after January 1, 2021, a taxpayer, or a taxpayer that was an employer, that made an eligible contribution to a certified impact housing trust fund or that offered its employees the option to participate in a qualified employer-assisted housing project that met certain requirements to claim a credit against the tax imposed under Part 1 or Part 2 of the Act.

 --       Require a taxpayer or employer to submit an outline of its project to the Michigan State Housing Development Authority (MSHDA) for approval, and if approved, require the employer to provide the MSHDA with certain information concerning the project in order to claim the credit for an employer-assisted housing project.

 --       Require the taxpayer to submit reasonable proof of the eligible contributions made and for which certified housing impact fund a credit was claimed, and to request certification of those eligible contributions to claim the credit for a certified housing impact fund.

 --       Specify that if the credit for the tax year and any unused carryforward of the credit exceeded the taxpayer's tax liability for the tax year, that portion that exceeded the  liability could not be refunded but could be carried forward to offset tax liability in subsequent tax years.

Senate Bill 361 (S-1) would amend the State Housing Development Authority Act to do the following:

 --       Authorize the MSHDA to certify certain housing impact funds and approve eligible contributions made to those funds and to approve certain employer-assisted housing projects and issue certificates to entities for the basis of an income tax credit under Part 1 or Part 2 of the Income Tax Act as proposed in Senate Bill 360.

 --       Require the MSHDA to develop an application and approval process to certify certain housing impact funds, approve certain employer-assisted housing projects, approve contributions made to those funds and costs incurred to implement and maintain those projects, and to issue certificates for State income tax credits as described above.

 --       Require the MSHDA certify or approve a housing impact fund or an employer-assisted housing project if it met the bill's requirements.

 --       Allow a housing impact fund or a person to request that the MSHDA determine if a contribution to that housing impact fund qualified for the tax credit described above.

 --       Require the MSHDA to maintain a list of certified housing impact funds on its website.

Proposed MCL 206.279 & 206.678 (S.B. 360)                             Legislative Analyst:   Tyler VanHuyse

MCL 125.1422 et al. (S.B. 361)

FISCAL IMPACT

Senate Bill 360 (S-1) would reduce State corporate and individual income tax revenue to the