Homestead Property Tax Credit — Homestead Definition

Current understanding

Section 508 of the Income Tax Act of 1967 (MCL 206.508) sets forth the definition of ‘homestead’ used to determine eligibility and computation of Michigan’s individual income tax homestead property tax credit. HB 5236 (103rd Legislature) proposes to amend this definition; specific scope of the modification remains to be recorded from the introduced text. The bill has been introduced and no fiscal or programmatic details are yet confirmed.

Evidence log

• 2025-11-06 — Individual income tax: property tax credit; definition of homestead; modify. Amends sec. 508 of 1967 PA 281 (MCL 206.508).: cross-connection with homestead-property-tax-credit-trusts: Both bills amend adjacent sections of the Income Tax Act (secs. 508 and 510 of 1967 PA 281) governing the individual income tax homestead property tax credit — HB 5236 modifies the definition of homestead, while HB 5235 clarifies eligibility for homesteads held in trusts. (novelty: 2)

Open questions

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