Individual income tax: property tax credit; owner and eligibility of a homestead placed in certain trusts; clarify. Amends sec. 510 of 1967 PA 281 (MCL 206.510).
Key claim: SB1045 clarifies that homesteads placed in certain trusts remain eligible for the individual income tax property tax credit under MCL 206.510.
Abstract
(SB1045 · 103rd Legislature) Individual income tax: property tax credit; owner and eligibility of a homestead placed in certain trusts; clarify. Amends sec. 510 of 1967 PA 281 (MCL 206.510). Latest action (2026-06-18): Referred To Committee On Finance, Insurance, And Consumer Protection
Why this matters
The homestead property tax credit is a significant income tax offset for Michigan homeowners and renters below statutory income thresholds, and ambiguity about whether a home held in a revocable or living trust qualifies has practical estate-planning consequences. Clarifying trust-owner eligibility in MCL 206.510 reduces the risk that taxpayers using common estate-planning vehicles lose access to the credit, without altering the credit’s overall structure or cost parameters.