Bill Text: MI HB4348 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Individual income tax; credit; credit for certain student loan payments; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 280.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-15 - Bill Electronically Reproduced 03/14/2017 [HB4348 Detail]
Download: Michigan-2017-HB4348-Introduced.html
HOUSE BILL No. 4348
March 14, 2017, Introduced by Reps. Zemke, Schor, Scott, Love, Gay-Dagnogo, Elder, Hertel, Pagan and Wittenberg and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding section 280.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 280. (1) For tax years that begin on and after January 1,
2018, a qualified taxpayer who is employed during the tax year as a
teacher, school administrator, or school superintendent at an at-
risk school in this state may claim a credit against the tax
imposed by this part equal to 100% of the amount paid on a
qualified student loan by the qualified taxpayer during the tax
year.
(2) To be eligible for the credit under this section, the
qualified taxpayer shall provide the department with proof of
residency, proof of employment within an at-risk school in this
state, and proof in support of the payments claimed under this
section.
(3) If the credit allowed by this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability shall be refunded.
(4) As used in this section:
(a) "Approved postsecondary educational institution" means any
of the following:
(i) A public or private college or university, junior college,
or community college that grants degrees or certificates and is
located in this state.
(ii) A postsecondary educational institution, other than an
educational institution described in subparagraph (i), that is
located in this state, grants degrees, certificates, or other
recognized credentials, and is designated by the department as an
approved postsecondary educational institution.
(b) "At-risk school" means a public or nonpublic elementary or
secondary school where at least 50% of students at the school meet
the income eligibility criteria for free breakfast, lunch, or milk
in the immediately preceding state fiscal year, as determined under
the national school lunch act, 42 USC 1751.
(c) "Proof of residency" means a filed Michigan individual
income tax return that includes the taxpayer's certification that
he or she is a resident, a signed affidavit of Michigan residency,
or other proof of residency acceptable to the department.
(d) "Qualified student loan" means any state or federal loans
incurred to attend and receive a degree from an approved
postsecondary educational institution, including, but not limited
to, state loans authorized under the higher education loan
authority act, 1975 PA 222, MCL 390.1151 to 390.1165, and federal
loans authorized under the higher education act of 1965, Public Law
89-329, 20 USC 1001 to 1161aa-1.
(e) "Qualified taxpayer" means a taxpayer who received a
degree from an approved postsecondary educational institution after
the effective date of the amendatory act that added this section
and who is a resident of this state.
