Bill Text: MI HB5045 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Individual income tax: credit; student loan credit for certain graduates of this state; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 277.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced) 2023-09-27 - Bill Electronically Reproduced 09/26/2023 [HB5045 Detail]
Download: Michigan-2023-HB5045-Introduced.html
HOUSE BILL NO. 5045
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding section 277.
the people of the state of michigan enact:
Sec. 277. (1) For tax years beginning on and after January 1, 2024 and subject to the limitations under this section, a qualified taxpayer who received a bachelor's, master's, or other higher graduate degree from a postsecondary educational institution located in this state and remained in, or relocated to, this state for employment with an employer located in this state after obtaining a bachelor's, master's, or other higher graduate degree from that postsecondary educational institution may claim a credit against the tax imposed by this part equal to 50% of the amount paid on a qualified student loan by the qualified taxpayer during the tax year.
(2) A qualified taxpayer shall not claim a credit under this section for any single tax year that is equal to more than 20% of the average yearly tuition to attend a public university located in this state. A qualified taxpayer is eligible to claim the credit allowed under this section only within the 10 tax years immediately following the qualified taxpayer's graduation from the postsecondary educational institution located in this state.
(3) To be eligible for the credit under this section, the qualified taxpayer shall provide the department with proof of residency, proof of the applicable degree, and proof of employment in this state. The department may also require reasonable proof from the qualified taxpayer in support of payments claimed to be paid for a qualified student loan under this section.
(4) If the credit allowed under this section exceeds the qualified taxpayer's tax liability for the tax year, that portion that exceeds the tax liability for the tax year shall not be refunded.
(5) As used in this section:
(a) "Postsecondary educational institution" means a college, university, community college, or junior college that grants bachelor's, master's, or other higher graduate degrees.
(b) "Proof of residency" means a filed Michigan individual income tax return that includes the taxpayer's certification that the taxpayer is a resident, a signed affidavit of Michigan residency, or other proof of residency acceptable to the department.
(c) "Qualified student loan" means any state or federal loans incurred to attend and receive a degree from a postsecondary educational institution, including, but not limited to, state loans authorized under the higher education loan authority act, 1975 PA 222, MCL 390.1151 to 390.1165, and federal loans authorized under the higher education act of 1965, Public Law 89-329, 20 USC 1001 to 1161aa-1.
(d) "Qualified taxpayer" means a taxpayer who is a resident of this state, who is employed by an employer located in this state, and who has received a bachelor's, master's, or other higher graduate degree from a postsecondary educational institution located in this state after the effective date of the amendatory act that added this section.
