Individual income tax: credit; state historic preservation tax credit; eliminate. Amends secs. 266a & 676 of 1967 PA 281 (MCL 206.266a & 206.676). TIE BAR WITH: SB 0631'25

Michigan Senate Bill 633, introduced on October 30, 2025, proposes to eliminate the state's historic preservation tax credit. This credit currently allows individuals to reduce their income tax by a percentage of expenses incurred in rehabilitating historic properties. The bill seeks to amend sections 266a and 676 of the Income Tax Act of 1967 to remove this credit. It is linked to Senate Bill 631, indicating that both bills are intended to be enacted together.

Supporters of SB 633 argue that eliminating the historic preservation tax credit will simplify the tax code and reduce state expenditures. They believe that the credit primarily benefits property owners who can afford restoration projects without state assistance, and that removing it will free up resources for other state priorities.

Opponents contend that the historic preservation tax credit is crucial for incentivizing the rehabilitation of historic properties, which contributes to community revitalization and economic development. They argue that removing the credit could lead to neglect or demolition of historic structures, resulting in a loss of cultural heritage and potential tourism revenue.