MI SB0816

Allows eligible students and taxpayers with eligible student dependents to claim a credit against Michigan income tax for sales or use tax paid on textbooks purchased during the tax year, effective for tax years beginning January 1, 2024

Defines "eligible student" as individuals awarded a federal Pell grant, enrolled in and attending an eligible Michigan institution, and maintaining satisfactory academic progress; includes graduate and professional students who would have qualified for a Pell grant as undergraduates based on financial need

Defines "eligible institution" as vocational schools or institutions of higher education eligible to participate in U.S. Department of Education student aid programs, and "textbook" as any book or written material required by the institution for its courses

Requires taxpayers to submit receipts and reasonable proof of eligible student status and textbook purchases to claim the credit

Provides that any portion of the credit exceeding the taxpayer's tax liability must be refunded