HB 6454 Summary

• Creates the "Michigan tuition reimbursement credit" for individual taxpayers beginning in tax year 2019, allowing credits of 25-50% of qualified student loan payments based on eligibility criteria.

• Provides a 50% credit for taxpayers who both graduated from a Michigan high school and received a degree from a Michigan postsecondary institution; provides a 25% credit for those meeting only one criterion.

• Limits annual credit to 20% of average yearly tuition at similar Michigan postsecondary institutions and restricts eligibility to 10 tax years following graduation.

• Establishes employer tax credit under Section 675 allowing businesses to claim 25-50% credits for student loan payments made on behalf of qualified employees, with identical eligibility requirements and 20% annual tuition cap per employee.

• Requires taxpayers and employers to provide proof of residency, employment, and loan payments to the Michigan Department of Treasury; allows excess credits to be refunded if they exceed tax liability.