The bill amends the Income Tax Act of 1967 by adding a new section that allows taxpayers in Michigan to claim a credit against their income tax for each qualified dependent. The amount of the credit is equal to the target foundation allowance specified in the state school aid act for the school year ending during the tax year in which the credit is claimed. To qualify for this credit, the taxpayer must have claimed an exemption for the dependent, and the Department of Treasury may require proof that the dependent meets the qualifications.

A "qualified dependent" is defined as a child who is between the ages of 5 and 19, not enrolled in a public school for the relevant school year, and has demonstrated proficiency in reading and math at their appropriate grade level. If the credit exceeds the taxpayer's tax liability, the excess amount will be refunded. This new provision aims to provide financial relief to families with dependents who are not enrolled in public schools while ensuring that the dependents meet specific educational standards.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847