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HB 6063

Corporate income tax: credits; credit for student loan payments made by employer on behalf of a qualified employee who received a diploma or degree from an institution located in this state; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 679. TIE BAR WITH: HB 6061'26, HB 6062'26, HB 6064'26, HB 6065'26

2025-2026 Regular Session Introduced by Joey Andrews and 16 co-sponsors

HB 6063 would grant employers a refundable 50% tax credit for qualified student loan payments made for Michigan-educated employees, capped at 20% of public university annual tuitio

bill electronically reproduced 06/09/2026
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Bill Summary · HB 6063

Overview

House Bill 6063 (2025-2026, Michigan) would create a new individual income tax credit for employers. The credit would cover 50% of qualified student loan payments that an employer makes on behalf of a qualified employee who earned a degree from a Michigan institution and then stayed in or returned to Michigan for work with that employer. The credit is subject to annual limits and specific eligibility and documentation requirements. The act would take effect only if several related bills (HBs 6061, 6062, 6064, and 6065) are enacted.

Main purpose and intent

  • To incentivize employers to recruit and retain Michigan-educated workers by helping defray student loan debt for employees who completed degrees in-state.
  • To strengthen local talent pipelines by tying the credit to employees who studied in Michigan and then work for the employer in Michigan.

Key provisions and changes

  • Credit amount: A taxpayer (employer) may claim a credit equal to 50% of the amount paid on a qualified student loan on behalf of a qualified employee.
  • Eligible employee: The qualified employee must either:
    • have graduated from a high school located in Michigan, or
    • have earned a bachelor’s, master’s, or other graduate degree from a Michigan postsecondary institution and remained in or relocated back to Michigan for employment with the taxpayer after obtaining the degree.
  • Yearly cap per employee: The credit cannot exceed 20% of the average yearly tuition to attend a public Michigan university for any single tax year.
  • Documentation: Employers must submit a Department-prescribed form with:
    • Employer’s federal EIN or Michigan treasury number
    • Employee name, address, and graduation date
    • Date and amount of each loan payment made
    • Any additional criteria the department deems relevant
  • Refundability: If the credit exceeds the employer’s tax liability for the year, the excess is refundable.
  • Effective date and trigger: The bill’s enactment is contingent on the passage of four related bills (HB 6061, 6062, 6064, 6065) in the same legislative package.

Who would be affected

  • Affected entities: Michigan-based employers with qualified employees who have student loans tied to in-state education.
  • Affected individuals: Qualified employees who earned in-state degrees (high school or postsecondary) and remain or relocate to Michigan to work for the employer.
  • Potential beneficiaries: Employers and employees where the loan payments meet the eligibility criteria and documentation requirements, provided all related bills are enacted.

Procedural and timeline considerations

  • Enactment condition: This provision is not self-executing; it requires passage of HBs 6061, 6062, 6064, and 6065 (in addition to HB 6063) for the amendments to take effect.
  • Administrative process: The Michigan Department of Treasury would administer the credit, including forms, verification, and determinations of eligibility and credit amounts.
  • Compliance timing: Tax years beginning on or after the effective date of the act adding this section (Sec. 679) would be eligible, subject to the annual 20% tuition cap per employee.

Practical implications and considerations

  • For employers, the credit creates a potential cash-flow benefit by reducing state income tax liability or generating a refund for excess credits, tied to documented student loan payments for Michigan-educated employees.
  • For employees, this creates a potential indirect benefit through employer support of loan repayment, potentially aiding retention and attraction of in-state talent.
  • The 20% cap tied to public university tuition may limit the credit for high loan amounts, particularly for programs with higher tuition, and effectively caps the annual benefit per employee.

Summary

HB 6063 would authorize a 50% credit against Michigan corporate income tax for qualified student loan payments made by employers on behalf of employees who studied and worked in Michigan. The credit is capped at 20% of the average yearly tuition at a Michigan public university per employee per tax year, refundable if it exceeds tax liability, and requires detailed documentation. The measure is contingent on the concurrent passage of four related bills.

Compiled from official sources — confirm details with the bill’s official record.

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