House Bill 6062 would amend Michigan’s Income Tax Act to create a new refundable income tax credit for certain taxpayers who move to Michigan for employment after earning a postsecondary degree outside the state. The credit would equal 25% of the amount paid during the tax year on a qualified student loan, but only for taxpayers who did not graduate from a Michigan high school and did not earn their degree from a Michigan postsecondary institution. The bill is aimed at attracting and retaining out-of-state college graduates who relocate to Michigan for work.
The credit would be limited in two important ways. First, a taxpayer could not claim more than 20% of the average yearly tuition at a Michigan public university in any single tax year. Second, the credit would only be available during the 10 tax years immediately following graduation. Taxpayers would need to provide proof of degree and Michigan employment, and the Department of Treasury could require additional documentation of student loan payments. If the credit exceeds the taxpayer’s income tax liability, the excess would be refunded, making it a refundable credit rather than a nonrefundable one.
HB6062 would add section 279b to the Michigan Income Tax Act and create a new state income tax expenditure for eligible recent graduates who relocate to Michigan for employment. It would reduce state income tax revenue for qualifying taxpayers and could result in refunds beyond tax liability, increasing the fiscal impact relative to a nonrefundable credit. The bill also establishes administrative verification duties for the Department of Treasury and ties eligibility to education history, residency relocation, employment in Michigan, and student loan repayment.
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the bill text, the measure appears to be framed as an economic development and workforce recruitment incentive, suggesting a generally pro-growth intent. The absence of discussion and voting history means sentiment cannot be assessed beyond the bill’s apparent policy purpose.
The main points of contention likely involve fairness, cost, and targeting. Critics could question whether the credit favors recent out-of-state graduates over Michigan residents, including those who attended Michigan schools or did not take on student debt. Others may raise concerns about the revenue loss to the state and whether the credit would meaningfully influence relocation decisions. Supporters would likely emphasize workforce attraction, talent retention, and the incentive’s focus on graduates who move to Michigan for employment. The bill also depends on related legislation listed in its enacting section, so its effectiveness is contingent on enactment of the companion bills.