MI HB5177

Establishes a tax credit for taxpayers who purchase a qualified principal residence or retrofit their home for accessibility or visitability improvements between January 1, 2021 and January 1, 2026.

Credit amount equals 4.0% of the purchase price for a qualified residence or 50% of retrofitting costs, capped at $5,000 per principal residence, with a limit of one credit per residence.

Requires taxpayers to obtain certification from the Michigan State Housing Development Authority by January 10 following the tax year in which the purchase or retrofitting occurred.

Limits total statewide credits to $1,000,000 annually, with $500,000 allocated each for purchases and retrofits, allowing unused allocations to transfer between categories if demand is lower than available funds.

Defines "visitability" as homes with at least one zero-step entrance, one full or half bathroom on the main floor, and all main-floor doorways with minimum 32 inches of clear passage space; "accessibility" means homes designed for individuals with verified physical limitations.