Michigan Senate Bill SB0816

Michigan 2023-2024 Regular Session

• Introduced: 4/10/24
• Refer: 4/10/24

Caption

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

The potential effects of SB 816 on state laws include providing measurable financial relief for students enrolled in vocational or higher education institutions. By defining eligible students as those who receive federal Pell grants and are maintaining satisfactory academic progress, the bill targets support towards those who may need it most financially, thus promoting educational access and equity.

Summary

Senate Bill 816 aims to amend the Income Tax Act of 1967 by introducing a tax credit for eligible students related to the sales and use tax paid on textbooks. Starting January 1, 2024, taxpayers who qualify as eligible students or support a dependent who is an eligible student can claim this credit. The measure is designed to ease the financial burden on students by allowing them to receive a credit that mirrors the amount of sales tax or use tax they have paid for textbooks during the tax year.

Contention

While the bill seems to hold the promise of aiding students, discussions surrounding its implementation may revolve around the criteria for eligibility and potential fiscal implications for state revenue. Requirements for submitting receipts and proof of eligibility may raise questions about accessibility and administrative burdens for both the Department and the taxpayers. Moreover, some may debate whether this form of tax credit adequately addresses the broader, systemic concerns regarding educational financing and the rising costs of textbooks.