Michigan House Bill HB4937

Michigan 2023-2024 Regular Session

• Introduced: 9/5/23
• Refer: 9/5/23
• Refer: 10/18/23

Caption

Corporate income tax: credits; make it in Michigan credit for taxpayers that make qualified student loan payments on behalf of qualified employees who are graduates of this state; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677. TIE BAR WITH: HB 4933'23, HB 4936'23

Impact

The implementation of this bill is expected to have significant implications for state laws regarding income taxation and educational funding. By establishing the 'make it in Michigan credit,' the legislature hopes to contribute to the local economy by incentivizing employers to assist their employees with student loan payments. This financial support can serve as a compelling reason for graduates to either stay in Michigan or relocate there, thereby potentially fostering a more educated workforce and stimulating economic growth.

Summary

House Bill 4937 aims to amend the Income Tax Act of 1967 to introduce a tax credit designed to alleviate student loan burdens for recent graduates. Specifically, the bill allows taxpayers to claim a credit equal to 50% of the qualified student loan payments made on behalf of their employees who are recent graduates. Eligible employees must have graduated from high schools or postsecondary institutions located in Michigan and must either remain or relocate to the state for employment after graduation. The credit is intended to provide a financial incentive to both employees and employers, thus encouraging talent retention within the state's workforce.

Contention

Despite its potential benefits, HB 4937 is not without controversy. Concerns may arise surrounding the fiscal impact of the tax credits on state revenue, particularly if a substantial number of taxpayers claim the credits. Moreover, some lawmakers might argue that such measures preferentially benefit specific sectors or businesses while neglecting broader educational reforms needed to address the rising costs of higher education. As the bill progresses through legislative procedures, the debates are likely to explore both the intended benefits and the fiscal responsibilities associated with implementing such tax incentives.