SENATE BILL NO. 459

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.847) by adding section 281.

the people of the state of michigan enact:

Sec. 281. (1) For tax years beginning on and after January 1, 2026, a qualified taxpayer may claim a credit against the tax imposed under this part for all qualified user fees incurred during the tax year.

(2) The department may require reasonable proof from the taxpayer related to the qualified user fees for which a credit is claimed under this section.

(3) If the amount of 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 must be refunded.

(4) As used in this section:

(a) "Predominant place of employment" means the municipality in which the employee estimates the employee will earn the greatest percentage of the employee's compensation from the employer, which percentage is 25% or more.

(b) "Public service facility" means that term as defined under section 2b of 1846 RS 16, MCL 41.2b.

(c) "Qualified taxpayer" means a taxpayer who is a resident of a township with a population between 10,000 and 15,000, located in a county with a population greater than 1,500,000, or who is an individual whose predominant place of employment is within a township with a population between 10,000 and 15,000, located in a county with a population greater than 1,500,000.

(d) "Qualified user fees" mean user fees incurred during a time period that a public service facility is the only means of transportation to and from a township with a population between 10,000 and 15,000, located in a county with a population greater than 1,500,000.

(e) "User fees" means a fee charged under section 2b of 1846 RS 16, MCL 41.2b, for operating a vehicle on a public service facility.