HB 6037 Summary

• Establishes a tax credit for individual taxpayers beginning January 1, 2013, equal to 50% of qualified student loan payments made during the tax year, capped at 20% of average yearly tuition at Michigan public universities.

• Allows qualified taxpayers who are Michigan residents and employed in Michigan to claim the credit if they obtained a bachelor's degree from an approved postsecondary educational institution and provide proof of residency and employment.

• Permits any excess credit to be refunded to the taxpayer if it exceeds their tax liability for the tax year.

• Establishes a separate tax credit for employers equal to 50% of qualified student loan payments made on behalf of qualified employees, capped at 20% of average yearly tuition per employee, with unused credits allowed to carry forward for up to 10 tax years.

• Defines "qualified student loan" as state or federal loans for bachelor's degrees from approved institutions, including loans under Michigan's Higher Education Loan Authority Act and federal loans under the Higher Education Act of 1965.