September 21, 2009, Introduced by Senators JACOBS, HUNTER, CLARKE, KUIPERS, JANSEN and WHITMER and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 465.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 465. (1) An eligible taxpayer may claim a credit against
the tax imposed by this act equal to 50% of the amount of qualified
undergraduate loans repaid by the eligible taxpayer for employees
in the tax year for which the credit is claimed or $5,000.00 per
employee, whichever is less.
(2) A taxpayer shall not claim a credit under this section
unless the Michigan higher education student loan authority has
issued a certificate to the taxpayer. The taxpayer shall attach the
certificate to the return filed under this act on which a credit
under this section is claimed. The certificate required by this
subsection shall state all of the following:
(a) The taxpayer's federal employer identification number or
the Michigan treasury number assigned.
(b) The taxpayer is an eligible taxpayer.
(c) The date and amount of each loan repayment made on a
qualified undergraduate loan.
(d) Any other criteria that the Michigan higher education
student loan authority or the department considers appropriate for
the determination of eligibility for the credit under this section.
(3) If the credit allowed under this section exceeds the
taxpayer's tax liability for the tax year, that portion that
exceeds the tax liability for the tax year shall be refunded.
(4) As used in this section:
(a) "Eligible educational institution" means that term as
defined in section 529 of the internal revenue code or a college,
university, community college, or junior college described in
section 4, 5, or 6 of article VIII of the state constitution of
1963 or established under section 7 of article VIII of the state
constitution of 1963.
(b) "Eligible taxpayer" means an employer that meets all of
the following:
(i) Paid the employee for whom the loan repayment is made an
annual salary or wage of at least $25,000.00.
(ii) Employed the employee for whom the loan repayment is made
for services or work done primarily in this state.
(iii) Began repayment of the qualified undergraduate loan within
6 months of the initial hiring date of the employee for whom the
loan repayment is made. For purposes of this subdivision, an
employee who is already employed by the employer on the effective
date of the amendatory act that added this section is considered to
be initially hired on the effective date of the amendatory act that
added this section.
(c) "Michigan higher education student loan authority" means
the Michigan higher education student loan authority created in
section 3 of the higher education loan authority act, 1975 PA 222,
MCL 390.1153.
(d) "Qualified undergraduate loan" means a federally
guaranteed student loan authorized under the higher education act
of 1965, Public Law 89-329, 20 USC 1001 to 1155.