Sens. Anthony and Hoitenga Lead Bipartisan Effort to Provide Relief for Housing Costs

May 22, 2025 | Press Release

LANSING, Mich (May 22, 2025) — In a bold bipartisan move to address Michigan’s housing affordability crisis, Sen. Sarah Anthony (D-Lansing), Chair of the Senate Appropriations Committee, and Sen. Michele Hoitenga (R-Manton) have introduced legislation to expand the Homestead Property Tax Credit (HPTC), providing meaningful tax relief to nearly half a million Michigan residents.

The legislative package modernizes the HPTC by expanding eligibility and increasing the credit amount, helping middle-class families, married couples who don’t have children, renters, and seniors keep up with the rising cost of living.

“The Homestead Property Tax Credit has been a valuable resource for homeowners for more than fifty years,” said Brad Ward, Vice President of Public Policy and Legal Affairs at the Michigan Realtors. “Making this credit available to more renters and homeowners will help build up our neighborhoods while property values continue to rise across the state.”

The proposal is expected to benefit approximately 500,000 filers, including 250,000 new claimants, by adjusting income thresholds and credit calculations. The HPTC is currently unavailable for households with an income over 60,700, regardless of filing status.

“This is about fairness and affordability,” said Sen. Anthony. “Michigan built the middle class, but today, far too many Michiganders are being priced out of their communities. By expanding the Homestead Property Tax Credit, we’re putting money back in the pockets of working people and seniors and ensuring that everyone — regardless of age or zip code — has a path to homeownership and economic stability.”

The legislation includes the following key reforms:

  • Lowers the property tax burden threshold from 3.2% to 3% of household income.
  • Establishes a separate, higher income threshold for married joint filers — doubling the current limit for single filers.
  • Raises the income eligibility cap by $10,000 to $70,700 for singles and $141,400 for joint filers.
  • Increases the percentage of rent that can be counted toward the credit from 23% to 25%.
  • Raises the maximum credit from $1,800 to $2,000, with inflation indexing maintained.
“This is a smart, targeted way to help people who are struggling with high housing costs,” said Sen. Hoitenga. “For many, it’s getting to a point where one job just isn’t enough to keep up with the rising cost of living. That’s just not right. These commonsense changes to our tax structure will deliver real relief without burdening local governments.”
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