HB 5074 Summary

• Adds a new deduction for qualified education loan payments beginning January 1, 2018, allowing taxpayers to deduct up to $5,000 annually for single returns or $10,000 for joint returns on qualified education loans used for eligible educational institutions located in Michigan.

• Defines qualifying terms by reference to section 221 of the Internal Revenue Code: "eligible educational institution," "qualified education loan," and "qualified higher education expenses."

• The deduction applies only to amounts not already deducted in determining adjusted gross income and is limited to loans funding attendance at institutions within the state.

• Includes legislative intent that the state general fund annually appropriate sufficient funds to the state school aid fund to fully compensate for any revenue loss resulting from this amendment.