MI HB4894

Effective for tax years beginning after December 31, 2018, allows taxpayers to claim a tax credit equal to textbook costs purchased and used for classes at Michigan institutions of higher education for themselves or dependents.

Limits credit to $500 per person (taxpayer or dependent) per tax year, with maximum total credits of $2,000 for single returns and $2,500 for joint returns.

Excludes textbook costs paid from education savings accounts or costs for which the taxpayer received reimbursement from the credit calculation.

Requires taxpayers to provide reasonable proof of textbook payments to the Department of Revenue upon request.

Any credit exceeding the taxpayer's tax liability for the year shall be refunded to the taxpayer.