November 12, 2009, Introduced by Senator RICHARDVILLE and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 278.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 278. (1) Subject to the limitation under subsection (5),
for the tax years that begin after September 30, 2009 and end
before October 1, 2011, a taxpayer that purchases a qualified newly
constructed home during the tax year may claim a credit against the
tax imposed by this act equal to 5% of the purchase price or
$10,000.00, whichever is less.
(2) To be eligible for the credit under this section, within
14 days after the purchase of the qualified newly constructed home,
the taxpayer shall submit a completed application for the new home
tax credit on forms provided by the department.
(3) If the taxpayer sells the new home or fails to use the new
home as his or her principal residence less than 2 years after
purchasing the new home and claiming the credit under this section,
the amount of the credit previously claimed relative to that new
home shall be added back to the tax liability of the taxpayer in
the year that the taxpayer sells that home or fails to maintain
that home as his or her principal residence.
(4) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability may be refunded or carried
forward and used to offset tax liability in the immediately
succeeding tax year only.
(5) The total amount of credits allowed under this section for
each state fiscal year shall not exceed $16,500,000.00.
(6) As used in this section:
(a) "Principal residence" means that term as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, and exempt from taxation under section 7cc of the general
property tax act, 1893 PA 206, MCL 211.7cc.
(b) "Qualified newly constructed home" means a detached or
attached single-family dwelling that is certified by the seller as
having never been occupied and is purchased to be the principal
residence of the taxpayer for at least 2 years.