Discussion, No Movement on College Tuition Tax Credit Bill

Senate Bill 408, legislation to allow tax breaks on student loan costs for newly graduated students, was the topic of a hearing before the Senate Finance Committee this week; however, the panel took no action.

The bill, sponsored by Senator Glenn Anderson (D-Westland) is meant to retain as many Michigan college students after graduation as possible. The quantity of college graduates leaving the state after receiving their degree has long been an issue described as taking a toll on Michigan’s economic recovery.

The proposal would allow for any graduate to be eligible for an income tax break of 50 percent of the total cost of their student loan. This was a change made to reduce overall cost estimates of the proposal, which still came in at $152.9 million according to the Senate Fiscal Agency analysis.

Senator Anderson said this legislation should aid in bringing more students to the state of Michigan and also to give them more of an incentive to stay after graduation. Further, proponents argue the legislation could help the economy in terms of increased tax revenues due to the boost in employment.

Senate Finance Committee Chairman Senator Jack Brandenburg (R-Harrison Township) said that the committee was just not ready to move the bill at this moment, even though keeping students in the state of Michigan is of utmost importance.

Senator John Proos (R-St. Joseph) said he’s quite worried about the steep increase in college tuition costs and that this is something that the Senate Appropriations Committee needs to seriously take a look at. Senator Anderson also said that this legislation should not solely apply to university students but also to trade schools and community colleges.

posted by PAA Online , Friday, October 4, 2013 11:46 AM
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