HOUSE BILL NO. 4934

August 23, 2023, Introduced by Reps. Snyder and Skaggs and referred to the Committee on Higher Education.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.847) by adding section 277a.

the people of the state of michigan enact:

Sec. 277a. (1) For tax years beginning on and after January 1, 2024 and subject to the limitations under this section, a qualified taxpayer who did not graduate from a high school located in this state or receive a bachelor's, master's, or other higher graduate degree from a postsecondary educational institution located in this state, but who relocated to this state for employment with an employer located in this state after obtaining a bachelor's, master's, or other higher graduate degree from a postsecondary educational institution, may claim a credit against the tax imposed by this part equal to 25% of the amount paid on a qualified student loan by the qualified taxpayer during the tax year.

(2) A qualified taxpayer shall not claim a credit under this section for any single tax year that is equal to more than 20% of the average yearly tuition to attend a public university located in this state. A qualified taxpayer is eligible to claim the credit allowed under this section only within the 10 tax years immediately following the qualified taxpayer's graduation from the postsecondary educational institution.

(3) To be eligible for the credit under this section, the qualified taxpayer shall provide the department with proof of residency, proof of the applicable degree, and proof of employment in this state. The department may also require reasonable proof from the qualified taxpayer in support of payments claimed to be paid for a qualified student loan under this section.

(4) If the credit allowed under this section exceeds the qualified taxpayer's tax liability for the tax year, that portion that exceeds the tax liability for the tax year shall be refunded.

(5) The credit allowed under this section may be referred to as the "make it in Michigan credit".

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:

(a) Senate Bill No.____ or House Bill No. 4933 (request no. 00575'23).

(b) Senate Bill No.____ or House Bill No.____ (request no. 03969'23).

(c) Senate Bill No.____ or House Bill No.____ (request no. 04009'23).