Bill Text: MI SB0385 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Income tax; credit; tax incentive for college degree; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.532) by adding sec. 281.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-19 - Referred To Committee On Finance [SB0385 Detail]

Download: Michigan-2011-SB0385-Introduced.html

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SENATE BILL No. 385

 

 

May 19, 2011, Introduced by Senators JOHNSON and BRANDENBURG and referred to the Committee on Finance.

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.532) by adding section 281.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 281. (1) For tax years that begin after December 31, 2011

 

and subject to the limitations under this section, a taxpayer who

 

is a resident of this state and who has obtained an associate

 

degree, bachelor's degree, master's degree, or doctorate degree

 

from an approved postsecondary educational institution located in

 

this state within the immediately preceding 10 years may claim a

 

credit against the tax imposed by this act equal to the following:

 

     (a) For an associate degree, $5,000.00.

 

     (b) For a bachelor's degree, $20,000.00.

 

     (c) For a master's degree, $30,000.00

 

     (d) For a doctorate degree, $50,000.00.

 

     (2) A taxpayer may claim a credit for each degree identified

 

in subsection (1)(a) through (d).

 

     (3) To be eligible to claim the credit under this section, the

 

taxpayer shall provide the department with proof of residency and

 

proof that he or she has obtained a degree from an approved

 

postsecondary educational institution for which the taxpayer is

 

seeking a credit under this section. If the taxpayer files a joint

 

return, each joint filer may take the credit under this section for

 

a degree earned by each filer.

 

     (4) If the credit allowed under this section exceeds the

 

taxpayer's tax liability for the tax year, that portion that

 

exceeds the tax liability for the tax year shall not be refunded

 

but may be carried forward to offset tax liability under this act

 

in subsequent tax years for a period not to exceed 10 tax years or

 

until used up, whichever occurs first.

 

     (5) As used in this section:

 

     (a) "Approved postsecondary educational institution" means a

 

degree- or certificate-granting public or private college or

 

university, junior college, or community college located in this

 

state.

 

     (b) "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.