Individual income tax: credit; credit for sales and use tax paid for textbooks purchased by eligible students; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 280.
Impact
Upon enactment, HB 6018 will introduce significant changes to the existing income tax framework in Michigan as outlined in the Income Tax Act of 1967. The inclusion of a tax credit for textbook purchases may encourage more individuals to seek higher education by reducing the financial burden of essential educational materials. The bill also mandates that taxpayers provide receipts and evidence of eligibility to claim the credit, which could streamline tax administration while ensuring authenticity in the claims made under the new law.
Summary
House Bill 6018 proposes a tax credit for individuals paying sales or use tax on textbooks purchased for eligible students. This bill aims to provide financial relief to students by allowing them to claim a credit equivalent to the sales tax paid on textbooks for the tax years starting from January 1, 2024. The provisions define 'eligible students' as those who have been awarded a federal Pell grant and are enrolled in accredited educational institutions in Michigan, which may include various forms of educational establishments such as community colleges, junior colleges, and vocational schools.
Contention
While the bill garners support as a means to facilitate education, there may be some contention regarding its fiscal implications. Critics could argue about the potential loss of tax revenue for the state, which might arise from the broad granting of this credit, particularly if a substantial number of students take advantage of it. Additionally, the requirement for eligibility linked to federal Pell grants may be seen as restrictive, potentially leaving out many deserving students who do not qualify for federal assistance but still require support for educational expenses.
Individual income tax: credit; credit for sales and use tax paid for textbooks purchased by eligible students; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 280.
Individual income tax: credit; credit for sales and use tax paid for textbooks purchased by eligible students; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.
Individual income tax: credit; student loan credit for certain graduates of this state; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 277.
Individual income tax: credit; make it in Michigan student loan credit for certain graduates of this state; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 277.
Individual income tax: credit; credit for the down payment on the purchase of a home; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 280.
Individual income tax: credit; credit for certain investments in Michigan businesses; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 280.
Individual income tax: credit; working parent tax credit and advanced monthly payments of that credit; create and provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 272b.
Relating to accountability of institutions of higher education, including educator preparation programs, and online institution resumes for public institutions of higher education.
Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.
Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.
Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.