The proposed bill amends the Income Tax Act of 1967 by adding a new section, 279a, which introduces a tax credit for qualified taxpayers in Michigan. This credit is available to individuals who have graduated from a high school or obtained a higher degree from a postsecondary institution in Michigan and who subsequently work for an employer in the state. Specifically, the credit allows these taxpayers to claim 50% of the amount paid on qualified student loans during the tax year, with certain limitations. The maximum credit for any single tax year cannot exceed 20% of the average yearly tuition for public universities in Michigan, and it is only available within ten years following 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 student loan payments. If the credit exceeds the taxpayer's tax liability, 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