The bill amends the Income Tax Act of 1967 by adding a new section, 279b, which introduces a tax credit for qualified taxpayers who have relocated to Michigan for employment after obtaining a higher education degree from a postsecondary institution outside the state. Specifically, these taxpayers, who did not graduate from a Michigan high school or receive a degree from a Michigan institution, can claim a credit equal to 25% of the amount paid on their qualified student loans during the tax year. However, the credit is capped at 20% of the average yearly tuition for public universities in Michigan and is only available within the 10 tax years following the taxpayer's graduation.

To qualify for this credit, taxpayers must provide proof of their degree and employment in Michigan, and the Department of Treasury may require additional documentation regarding the student loan payments. 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