HB 4409 Summary

• Creates a tax credit for individuals equal to 50% of qualified student loan payments made during the tax year, capped at 20% of average Michigan public university tuition per year.

• Allows only qualified taxpayers who received a degree after May 1, 2017 from an approved postsecondary institution, reside in Michigan, and are employed in Michigan to claim the individual credit.

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

• Defines qualified loans as state or federal education loans from approved postsecondary institutions, including Higher Education Loan Authority Act loans and federal Higher Education Act loans.

• Provides that excess credits beyond tax liability are not refundable and requires taxpayers to provide proof of residency, employment, and loan payments to claim the credits.