MI HB6262

Allows employers to claim a 50% tax credit against Michigan income tax for student loan payments made on behalf of qualified employees, effective January 1, 2023

Maximum credit of $1,800 per employee per year, limited to 20 qualified employees per employer annually

Eligible employees must have worked at least 480 hours during the tax year, earned a degree from an approved Michigan postsecondary institution after January 1, 2023, and have qualified state or federal student loans

Department of Treasury approves applications on first-come, first-served basis with $1.5 million aggregate annual cap across both credits (Sections 277 and 677), with at least 25% reserved for employers with 30 or fewer employees

Unused tax credits may be carried forward for up to 10 years; department must submit annual reports by July 1 beginning in 2024 on program effectiveness and participation metrics