MI HB4118

Allows qualified taxpayers to claim a tax credit equal to 50% of qualified student loan payments made during the tax year, effective January 1, 2015, with a maximum credit of 20% of average yearly Michigan public university tuition per year.

Requires taxpayers to be Michigan residents, employed in Michigan, and have received a degree from an approved postsecondary educational institution after May 1, 2015 to qualify for the individual credit.

Allows employers to claim a tax credit equal to 50% of qualified student loan payments made on behalf of qualified employees, capped at 20% of average yearly Michigan public university tuition per employee.

Qualifies loans include state loans under the Higher Education Loan Authority Act (1975 PA 222) and federal loans under the Higher Education Act of 1965 incurred to attend approved Michigan postsecondary institutions.

Credits cannot exceed tax liability and any excess amount will not be refunded; taxpayers and employers must provide proof of payments and meet residency/employment requirements.