Sec. 508. (1) "Gross rent" means the total rent contracted to be paid by the renter or lessee of a homestead pursuant to dealing at arms' length with the landlord of the homestead. When the landlord and tenant have not dealt with each other at arms' length

and the department believes that the gross rent charged is excessive, the department may adjust the gross rent to a reasonable amount for the purposes of this chapter.

(2) "Homestead" means a dwelling or unit in a multiple-unit dwelling that is subject to ad valorem taxes, or a service charge in lieu of taxes as provided by section 15a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1415a, owned and occupied as a home by the owner of the dwelling or unit, or occupied as the dwelling of the renter or lessee, including all unoccupied real property not classified for ad valorem tax purposes as commercial, industrial, residential, or timber-cut over, owned by the owner of the homestead. Beginning in the 1990 tax year, a A homestead does not include unoccupied real property that is leased or rented by the owner to another person and that is not adjacent and contiguous to the home of the owner. Additionally, the following apply:

(a) If a homestead is an integral part of a larger unit of assessment such as commercial, industrial, residential, timber-cut over, or a multipurpose or multidwelling building, the tax on the homestead shall be is the same proportion of the total property tax as the proportion of the value of the homestead is to the total value of the assessed property.

(b) If the gross receipts of the agricultural or horticultural operations do not exceed the household income, or if there are no gross receipts, the following apply:

(i) If the claimant has lived on the land 10 years or more, all of the adjacent and contiguous agricultural or horticultural lands shall be are considered a homestead and the credit is allowed for all the land.

(ii) If the claimant has lived on the land less than 10 years, not more than 5 acres of adjacent and contiguous agricultural or horticultural land shall be is considered a part of the homestead and the credit is allowed for that part of the land.

(c) A mobile home or trailer coach in a trailer coach park is a homestead and the site rent for space is considered the rent of a homestead. The specific tax levied by section 41 of 1959 PA 243, MCL 125.1041, is considered a property tax.

(3) "Household" means a claimant and spouse.

(4) "Total household resources" means all income received by all persons individuals of a household in a tax year while members of a household, excluding for tax years beginning after December 31, 2018 any compensation received pursuant to the wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751 to 691.1757, and increased by the following deductions from federal gross income:

(a) Any net business loss after netting all business income and loss.

(b) Any net rental or royalty loss.

Sec. 510. (1) "Income" means the sum of federal adjusted gross income as defined in the internal revenue code plus all income specifically excluded or exempt from the computations of the federal adjusted gross income. Also, a person an individual who is enrolled in an accident or health insurance plan may deduct from income the amount that person individual paid in premiums in the tax year for that insurance plan for the person's individual's family. Income does not include any of the following:

(a) The first $300.00 of gifts in cash or kind from nongovernmental sources.

(b) The first $300.00 received from awards, prizes, lottery, bingo, or other gambling winnings.

(d) Relief in kind supplied by a governmental agency.

(e) Payments or credits under this part.

(f) A governmental grant that has to be used by the claimant for rehabilitation of the claimant's homestead.

(g) Stipends received by a person an individual 60 years of age or older who is acting as a foster grandparent under the foster grandparent program authorized pursuant to section 211 of part B of title II of the domestic volunteer service act of 1973, Public Law 93-113, under 42 USC 5011, or who is acting as a senior companion pursuant to section 213 of part C of title II of the domestic volunteer service act of 1973, Public Law 93-113, under the senior companion program under 42 USC 5013.

(h) Amounts deducted from monthly social security or railroad retirement benefits for medicare premiums.

(i) Contributions by an employer to life, accident, or health insurance plans.

(j) Energy assistance grants and energy assistance tax credits.

(2) "Owner" means a natural person an individual who owns or is purchasing a homestead under a mortgage or land contract, who owns or is purchasing a dwelling situated on the leased lands of another, or who is a tenant-stockholder of a cooperative housing corporation.

Sec. 522. (1) The amount of a claim made pursuant to under

this chapter shall must be determined as follows:

(a) A claimant who is not a senior citizen is entitled to a credit against the state income tax liability under this part equal to 60% of the amount by which the property taxes on the homestead, or the credit for rental of the homestead for the tax year, exceeds 3.5% 3.2% of the claimant's total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of the claimant's total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(b) A claimant who is a senior citizen is entitled to a credit against the state income tax liability under this part equal to the following:

(i) For a claimant with total household resources of $21,000.00 or less for a single return and $42,000.00 or less for a joint return, an amount as determined in accordance with subdivision (c).

(ii) For a claimant with total household resources of more than $21,000.00 and less than or equal to $22,000.00 for a single return and $42,000.00 and less than or equal to $44,000.00 for a joint return, an amount equal to 96% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(iii) For a claimant with total household resources of more than $22,000.00 and less than or equal to $23,000.00 for a single return and $44,000.00 and less than or equal to $46,000.00 for a joint return, an amount equal to 92% of the difference between the property taxes on the homestead or the credit for rental of the

homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(iv) For a claimant with total household resources of more than $23,000.00 and less than or equal to $24,000.00 for a single return and $46,000.00 and less than or equal to $48,000.00 for a joint return, an amount equal to 88% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(v) For a claimant with total household resources of more than $24,000.00 and less than or equal to $25,000.00 for a single return and $48,000.00 and less than or equal to $50,000.00 for a joint return, an amount equal to 84% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(vi) For a claimant with total household resources of more than $25,000.00 and less than or equal to $26,000.00 for a single return and $50,000.00 and less than or equal to $52,000.00 for a joint return, an amount equal to 80% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0%

of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(vii) For a claimant with total household resources of more than $26,000.00 and less than or equal to $27,000.00 for a single return and $52,000.00 and less than or equal to $54,000.00 for a joint return, an amount equal to 76% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(viii) For a claimant with total household resources of more than $27,000.00 and less than or equal to $28,000.00 for a single return and $54,000.00 and less than or equal to $56,000.00 for a joint return, an amount equal to 72% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(ix) For a claimant with total household resources of more than $28,000.00 and less than or equal to $29,000.00 for a single return and $56,000.00 and less than or equal to $58,000.00 for a joint return, an amount equal to 68% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(x) For a claimant with total household resources of more than $29,000.00 and less than or equal to $30,000.00 for a single return and $58,000.00 and less than or equal to $60,000.00 for a joint return, an amount equal to 64% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(xi) For a claimant with total household resources of more than $30,000.00 for a single return and $60,000.00 for a joint return, an amount equal to 60% of the difference between the property taxes on the homestead or the credit for rental of the homestead for the tax year and 3.5% 3.2% of total household resources for tax years before the 2018 2025 tax year or 3.2% 3.0% of total household resources for the 2018 2025 tax year and each tax year after 2018.2025.

(c) A claimant who is a senior citizen with total household resources of $21,000.00 or less for a single return and $42,000.00 or less for a joint return or a paraplegic, hemiplegic, or quadriplegic and for tax years that begin after December 31, 1999, a claimant who is totally and permanently disabled, deaf, or, for tax years that begin after December 31, 2012, blind is entitled to a credit against the state income tax liability for the amount by which the property taxes on the homestead, the credit for rental of the homestead, or a service charge in lieu of ad valorem taxes as provided by section 15a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1415a, for the tax year exceeds the percentage of the claimant's total household resources for that

tax year computed as follows:

Total household resources	Percentage
Not over $3,000.00 for a single return and $6,000.00 for a joint return	.0%
Over $3,000.00 but not over $4,000.00 for a single return and $6,000.00 but not over $8,000.00 for a joint return	1.0%
Over $4,000.00 but not over $5,000.00 for a single return and $8,000.00 but not over $10,000.00 for a joint return	2.0%
Over $5,000.00 but not over $6,000.00 for a single return and $10,000.00 but not over $12,000.00 for a joint return	3.0%
Over $6,000.00 for a single return and $12,000.00 for a joint return for tax years before the 2018 2025 tax year	3.5%3.2%
Over $6,000.00 for a single return and $12,000.00 for a joint return for tax years after the 2017 2024 tax year	3.2%3.0%

(d) A claimant who is an eligible serviceperson, eligible veteran, or eligible widow or widower is entitled to a credit against the state income tax liability for a percentage of the property taxes on the homestead for the tax year not in excess of 100% determined as follows:

(i) Divide the taxable value allowance specified in section 506 by the taxable value of the homestead or, if the eligible serviceperson, eligible veteran, or eligible widow or widower leases or rents a homestead, divide 20% 23% of the total annual rent paid for tax years before the 2018 2025 tax year or 23% 25% of the total annual rent paid for tax years after the 2017 2024 tax year on the property by the property tax rate on the property.

(ii) Multiply the property taxes on the homestead by the percentage computed in subparagraph (i).

(e) A claimant who is blind is entitled to a credit against the state income tax liability for a percentage of the property taxes on the homestead for the tax year determined as follows:

(i) If the taxable value of the homestead is $3,500.00 or less, 100% of the property taxes.

(ii) If the taxable value of the homestead is more than $3,500.00, the percentage that $3,500.00 bears to the taxable value of the homestead.

(2) A person claimant who is qualified to make a claim under more than 1 classification shall elect the classification under which the claim is made.

(3) Only 1 claimant per household for a tax year is entitled to the credit, unless both the husband and wife spouses filing a joint return are blind, then each shall be considered is a claimant.

(4) As used in this section, "totally and permanently disabled" means disability as defined in section 216 of title II of the social security act, 42 USC 416.

(5) A senior citizen who has total household resources for the tax year of $6,000.00 or less for a single return and $12,000.00 or less for a joint return and who for 1973 received a senior citizen homestead exemption under former section 7c of the general property tax act, 1893 PA 206, may compute the credit against the state income tax liability for a percentage of the property taxes on the homestead for the tax year determined as follows:

(a) If the taxable value of the homestead is $2,500.00 or less, 100% of the property taxes.

(b) If the taxable value of the homestead is more than $2,500.00, the percentage that $2,500.00 bears to the taxable value of the homestead.

(6) For a return of less than 12 months, the claim shall must be reduced proportionately.

(7) The department may prescribe tables that may be used to determine the amount of the claim.

(8) The total credit allowed in this section for each year shall must not exceed the amount determined under section 520.

(9) The total credit allowable under this part and part 361 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101 to 324.36117, shall must not exceed the total property tax due and payable by the claimant in that year. The amount by which the credit exceeds the property tax due and payable shall must be deducted from the credit claimed under part 361 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101 to 324.36117.

Enacting section 1. This amendatory act applies to all tax years that begin on and after January 1, 2025.

Enacting section 2. This amendatory act does not take effect unless Senate Bill No. 345 of the 103rd Legislature is enacted into law.