The bill amends the Income Tax Act of 1967 by adding a new section, Sec. 679, which allows taxpayers to claim a credit against their income tax for payments made on qualified student loans on behalf of qualified employees. This credit is set at 50% of the amount paid, provided that the employee graduated from a high school or postsecondary institution in Michigan and is employed by the taxpayer in the state. 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 submit proof of 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