Michigan House Bill HB4936

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 relocated to this state for employment; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677a. TIE BAR WITH: HB 4933'23, HB 4937'23

Impact

The implementation of HB 4936 is anticipated to foster economic development in Michigan by incentivizing businesses to attract and retain educated professionals from outside the state. By supporting student loan payments, the state hopes to create a more favorable employment market and stimulate further investments in businesses. However, it requires that candidates did not obtain their high school education or any degree from local institutions, which may lead to discussions around fairness and accessibility for local graduates.

Summary

House Bill 4936 proposes an amendment to the Income Tax Act of 1967, specifically by adding section 677a, which enables taxpayers to claim a tax credit for making payments on behalf of qualified employees' student loans. Under this bill, starting from the tax year 2024, taxpayers can claim a credit equal to 25% of the qualified loan payments for employees who have relocated to Michigan for employment after obtaining their degrees from out-of-state institutions. This aims to attract talent to the state by easing student loan burdens for young professionals.

Contention

Notable points of contention surrounding HB 4936 may involve its perceived favoritism towards out-of-state graduates, raising concerns about its impact on Michigan residents who may be burdened with their student loans. Additionally, there may be skepticism among stakeholders regarding the effectiveness of the program to genuinely influence relocation decisions of graduates, and whether it will result in a practical benefit to the state's economy. Furthermore, the bill is tied to the passage of other bills in the 102nd Legislature, creating additional legislative dependencies.