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.

Michigan House Bill 6084 proposes a tax credit for homeowners who build accessory dwelling units (ADUs) on their property. Starting January 1, 2026, homeowners can receive a credit equal to 20% of the construction costs of an ADU, which is a smaller, secondary housing unit on the same property as the main home. If the credit exceeds the homeowner's tax liability for the year, the unused portion can be carried forward to future tax years until fully used. The Michigan Department of Treasury may require proof of construction costs to validate the credit.

Supporters of HB6084 argue that the bill encourages the development of accessory dwelling units (ADUs), which can help alleviate housing shortages and provide affordable housing options. By offering a tax credit, the bill incentivizes homeowners to invest in ADUs, potentially increasing housing availability and diversity in Michigan communities.

Critics of HB6084 express concerns that the tax credit may primarily benefit wealthier homeowners who can afford the upfront costs of constructing accessory dwelling units (ADUs). They argue that the bill could lead to increased density in residential neighborhoods, potentially straining local infrastructure and altering community character. Additionally, there are concerns about the potential loss of tax revenue and whether the bill effectively addresses affordable housing needs for lower-income residents.