The bill amends the Income Tax Act of 1967 by adding a new section, 679a, which allows taxpayers to claim a credit against their income tax for payments made on qualified student loans on behalf of certain employees. Specifically, the credit is set at 25% of the amount paid for employees who did not graduate from a high school or obtain a higher degree from a postsecondary institution in Michigan but relocated to the state for employment after earning their degree elsewhere. However, the credit for any single employee in a tax year cannot exceed 20% of the average yearly tuition for a public university in Michigan.

To qualify for this credit, taxpayers must provide reasonable proof of the payments made on behalf of the employee, including details such as the taxpayer's identification number, the employee's information, and payment records. Additionally, if the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded. The enactment of this bill is contingent upon the passage of several other specified bills in the 103rd Legislature.

Statutes affected:
House Introduced Bill: 206.1, 206.847