Individual income tax: credit; make it in Michigan student loan credit for graduates who relocate to this state for employment; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 277a. TIE BAR WITH: HB 4933'23
The introduction of this bill could positively impact state laws regarding taxation by offering financial relief to new residents who contribute to the local workforce. By limiting the credit to graduates who have not completed their primary education or higher education within Michigan, the bill positions itself as a means to increase the state's talent pool. Moreover, the credit is capped at a maximum of 20% of the average public university tuition, ensuring that it remains targeted and sustainable within the state’s budgetary constraints.
House Bill 4934 proposes a new tax credit titled the "make it in Michigan credit" aimed at incentivizing graduates from out-of-state educational institutions to relocate to Michigan for employment. The bill amends the 1967 Income Tax Act and allows qualified taxpayers to claim a credit equal to 25% of their student loan repayments made during the tax year, effective for tax years starting January 1, 2024. This initiative seeks to attract skilled graduates and fosters an environment conducive to economic development within Michigan.
Discussions surrounding HB 4934 may involve points of contention regarding its effectiveness and fairness. While proponents argue it will promote migration of talent to Michigan, opponents may question whether the incentives provided justify the potential loss of tax revenue. Additionally, there could be debates regarding the administrative burden of verifying eligibility criteria for tax credits, including residency, degree credentials, and proof of employment. The overall success of this bill will hinge on its ability to genuinely attract and retain qualified professionals in the state.