Individual income tax: credit; credit for student loan payments made by certain taxpayers who relocated to this state for employment; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 279b. TIE BAR WITH: HB 6061'26, HB 6063'26, HB 6064'26, HB 6065'26

2025-2026 Regular Session Introduced by Joey Andrews and 15 co-sponsors

Michigan offers a refundable credit of 25% of qualified student loan payments to out-of-state degree holders who move for Michigan work, within a 10-year window and capped at 20% o

bill electronically reproduced 06/09/2026

#highereducation:financialaid #individualincometax:credit

Overview

HB 6062 (2025-2026 Michigan session) proposes a new individual income tax credit aimed at taxpayers who relocate to Michigan for employment after earning a postsecondary degree elsewhere. The credit targets graduates who did not earn their degree in Michigan and did not attend a Michigan high school, providing a partial reimbursement tied to qualified student loan payments.

Key provisions and changes

Credit amount and eligibility (Sec. 279b(1)): A qualified taxpayer may claim a credit equal to 25% of the amount paid on a qualified student loan during the tax year. Eligibility is limited to those who:

Relocated to Michigan for employment with a Michigan employer.
Did not graduate from a Michigan high school.
Did not receive a bachelor’s, master’s, or other higher degree from a Michigan postsecondary institution (i.e., degree earned outside Michigan).
Earn their degree from a postsecondary institution located outside Michigan.

Cap on the credit (Sec. 279b(2)): The credit cannot exceed 20% of the average yearly tuition to attend a public university in Michigan for any tax year.

20-year eligibility window (Sec. 279b(2)): The credit can be claimed only during the 10 tax years immediately following the graduate’s completion of their degree.

Documentation and verification (Sec. 279b(3)): The taxpayer must provide proof of:

The applicable degree.
Employment in Michigan.
Payments claimed as qualified student loan payments; the department may require additional reasonable proof.

Refundability (Sec. 279b(4)): If the credit exceeds the taxpayer’s tax liability for the year, the excess is refundable.

Enactment condition: The new credit takes effect only if a set of related bills (HB 6061, 6063, 6064, and 6065, all from the 2025-2026 package) are enacted. This is a tie-bar mechanism requiring passage of all four companion bills.

Who would be affected

Targeted individuals who:

Relocate to Michigan for work.
Earned their postsecondary degree outside Michigan.
Did not graduate from a Michigan high school.

Potential beneficiaries are recent graduates and early-career professionals moving to Michigan, with ongoing loan repayment assistance for up to a decade after graduation.

State tax administration would administer the credit, requiring documentation of degrees, employment, and loan payments.

Procedural and timeline aspects

Effective date contingent on the enactment of four other related bills (tie-bar). If any of the companion bills fail, HB 6062 does not take effect.

If enacted, the credit applies to tax years beginning on or after the effective date of the act adding the section (Sec. 279b).

The bill was introduced and referred to the Committee on Economic Competitiveness (as of the latest action history).

Potential impact considerations

Financial impact on state revenue depends on the take-up rate and the average loan amounts claimed.

Could influence talent attraction strategies by Michigan to recruit graduates from other states or countries.

Administrative complexity includes verifying non-M Michigan degrees, relocation employment, and loan payments, plus monitoring eligibility window and cap on the credit.

Bill