MI HB5045

Establishes a tax credit for qualified taxpayers equal to 50% of qualified student loan payments made during the tax year, effective for tax years beginning January 1, 2024 and later.

Limits the annual credit to no more than 20% of the average yearly tuition at a public Michigan university, and restricts eligibility to 10 tax years following graduation from an in-state postsecondary institution.

Requires applicants to be Michigan residents employed by an in-state employer and to have earned a bachelor's, master's, or higher graduate degree from a Michigan postsecondary institution after the bill's effective date.

Defines "qualified student loan" to include state loans under the Higher Education Loan Authority Act (1975 PA 222) and federal loans under the Higher Education Act of 1965.

Requires taxpayers to provide proof of residency, applicable degree, and in-state employment; excess credits cannot be refunded and are limited to the taxpayer's tax liability.