Accessory Dwelling Unit Installation Tax Credit

Current understanding

Michigan HB 6084 (103rd Legislature) would amend the Income Tax Act of 1967 (1967 PA 281, MCL 206.1 - 206.847) by adding section 282 to create an individual income tax credit for taxpayers who install an accessory dwelling unit (ADU) on their property. The bill is at the ‘introduced’ stage; specific credit amounts, caps, eligibility requirements, and definitions of a qualifying ADU remain to be captured as the statutory text is reviewed.

Evidence log

• 2026-02-24 — Land use: zoning and growth management; zoning restrictions related to accessory dwelling units and mobile homes; modify. Amends sec. 102 of 2006 PA 110 (MCL 125.3102) & adds secs. 207a & 516.: cross-connection with residential-zoning-growth-management: HB5585’s ADU zoning preemption pairs with the ADU installation tax credit — availability of the credit depends on local zoning permitting ADUs. (novelty: 2)
• 2026-06-16 — Land use: zoning and growth management; accessory dwelling units; allow to connect to the sewer connection servicing the primary dwelling unit. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. 205e.: cross-connection with housing-building-codes: HB6085’s sewer-connection allowance further defines the infrastructure conditions under which ADUs can be built, complementing the ADU installation tax credit’s eligibility rules. (novelty: 2)
• 2026-06-16 — Individual income tax: credit; credit for the installation of an accessory dwelling unit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 282.: cross-connection with housing-opportunity-tax-credit: Both create individual income tax credits under 1967 PA 281 aimed at expanding Michigan’s housing supply — HB 6084 targets homeowner ADU installation while HB 5806 targets larger-scale housing development. (novelty: 2)

Open questions

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