Bill Text: MI SB0408 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Individual income tax; credit; credit for payment of certain student loans; create. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 275.

Spectrum: Moderate Partisan Bill (Democrat 10-2)

Status: (Introduced - Dead) 2014-01-08 - Referred To Committee On Appropriations [SB0408 Detail]

Download: Michigan-2013-SB0408-Introduced.html

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SENATE BILL No. 408

 

June 4, 2013, Introduced by Senators ANDERSON, GREGORY, JONES, HUNTER, ANANICH, WARREN, BIEDA, SMITH, HOPGOOD, ROCCA, WHITMER and HOOD and referred to the Committee on Finance.

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.713) by adding section 275.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 275. (1) Beginning on and after January 1, 2013, a

 

qualified taxpayer may claim a credit against the tax imposed by

 

this part equal to 50% of the amount paid on a qualified student

 

loan by the qualified taxpayer during the tax year. A qualified

 

taxpayer shall not claim a credit of more than 20% of the average

 

yearly tuition for Michigan's public universities under this

 

section for any single tax year.

 

     (2) To be eligible for the credit under this section, the

 

qualified taxpayer shall provide the department with proof of

 

residency 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.

 

     (3) 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.

 

     (4) As used in this section:

 

     (a) "Approved postsecondary educational institution" means any

 

of the following:

 

     (i) A college, university, community college, or junior college

 

described in section 4, 5, or 6 of article VIII of the state

 

constitution of 1963 or established under section 7 of article VIII

 

of the state constitution of 1963.

 

     (ii) An independent nonprofit college or university 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.

 

     (c) "Qualified student loan" means any state or federal loans

 

incurred to attend and receive a bachelor's 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 1155.

 

     (d) "Qualified taxpayer" means a taxpayer who attended an

 

approved postsecondary educational institution and received a

 

bachelor's degree from that institution, who is a resident of this

 

state, and who is employed in this state.