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.