MI HB6131

Creates a "Michigan tuition reimbursement credit" for qualified taxpayers who pay on qualified student loans, beginning with tax years on or after January 1, 2023.

Provides a 50% credit for taxpayers satisfying both eligibility conditions (graduating from a Michigan high school AND receiving a degree from a Michigan postsecondary institution) and a 25% credit for satisfying only one condition.

Limits individual credit claims to 20% of average yearly tuition at similar Michigan postsecondary institutions per year, with eligibility restricted to 10 tax years following graduation.

Allows employers to claim the same credit (50% or 25%) for payments made on qualified student loans on behalf of qualifying employees who graduated within the preceding 10 tax years.

Requires proof of Michigan residency and employment; credits exceeding tax liability in any year are refundable; applies to both state and federal student loans.