The bill amends the Income Tax Act of 1967 by adding a new section that allows taxpayers to claim a credit against their income tax based on the target foundation allowance specified in the state school aid act for each qualified dependent. A qualified dependent is defined as a child aged 5 to 18 who is not enrolled in a public school and has demonstrated proficiency in reading and math. Taxpayers must provide reasonable proof of their dependent's qualifications, and 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 children who are not enrolled in public schools, encouraging educational alternatives while ensuring that children meet certain academic standards. The bill outlines the criteria for what constitutes a "qualified dependent" and establishes the process for claiming the credit, thereby enhancing the existing tax framework to support educational choices for families in Michigan.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847