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: HB5235 clarifies that homeowners who place their homestead in certain trusts remain eligible for the Michigan individual income tax property tax credit under MCL 206.510.
Abstract
(HB5235 · 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 (2026-06-09): Referred To Second Reading
Why this matters
The homestead property tax credit is one of Michigan’s largest household tax expenditures, and modern estate planning routinely places primary residences into revocable or living trusts. Clarifying that trust ownership does not disqualify a homeowner preserves the credit for potentially thousands of filers and reduces disputes with the Department of Treasury over eligibility. The change is technical rather than expansionary — it aligns statutory text with common ownership arrangements without altering credit amounts or income thresholds.