House Bill 6063 would amend Michigan’s Income Tax Act to create a new refundable income tax credit for employers that help pay a qualified employee’s student loans. The credit would equal 50% of the amount the taxpayer pays on behalf of a qualified employee during the tax year, but only for employees who either graduated from a Michigan high school or earned a postsecondary degree from a Michigan institution and then stayed in or returned to Michigan for employment with that taxpayer after earning a bachelor’s, master’s, or other graduate degree.
The bill limits the credit to no more than 20% of the average yearly tuition at a public university in Michigan for any single employee in a single tax year. To claim the credit, the taxpayer must provide documentation to the Department of Treasury, including identifying information for the employer and employee, the employee’s graduation date, and the dates and amounts of loan payments. If the credit exceeds the taxpayer’s income tax liability, the excess would be refundable, meaning the state would pay the difference back to the taxpayer.
HB6063 would add a new section 679 to the Michigan Income Tax Act and create a state tax incentive aimed at encouraging employers to recruit, retain, and support Michigan-educated workers. It would affect employers that make student loan payments on behalf of eligible employees and would require the Department of Treasury to administer and verify claims. The bill would also create a refundable credit, which could reduce state revenue and potentially increase state expenditures when credits exceed tax liability.
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text, the measure appears designed as a workforce-retention and higher-education incentive, which typically appeals to employers and policymakers focused on keeping graduates in Michigan. The absence of recorded discussion means the overall sentiment cannot be measured from the provided materials.
The main policy questions likely concern the cost of the refundable credit to the state, the fairness of limiting the benefit to employees tied to Michigan high schools or Michigan postsecondary institutions, and the administrative burden of documenting eligible loan payments. Another possible point of contention is whether the credit should be available for payments made on behalf of employees who return to Michigan after earning advanced degrees elsewhere, since the bill includes both in-state graduates and those who relocate back to Michigan after graduate education. Because no transcripts are available, these concerns are inferred from the structure of the bill rather than from stated objections.