House panel to debate student loan tax credits Wednesday

Graduates could claim an income tax credit

Published On: May 01 2013 04:17:32 AM EDT
School Budget Money
LANSING, Mich. -

A Michigan House panel is expected to debate a bill that would provide tax credits for student loan payments.
 

The Michigan Competitiveness House Committee plans to debate the bill Wednesday.
 
Michigan residents who graduated from one of the state's public or private colleges or universities could claim an income tax credit equal to 50 percent of certain student loan payments made that year. The credit couldn't exceed 20 percent of public universities' average yearly tuition or $2,150.
 
Democratic Rep. Andy Schor of Lansing said in a statement when the bill was introduced that it will encourage students to stay in Michigan after graduating.
 
The House Fiscal Agency says state income tax revenue would drop by an estimated $240 million to $420 million a year.