Bill > SB0118

This bill creates a new tax credit for Michigan taxpayers with certain qualified dependents who are not enrolled in public schools. Specifically, the bill allows taxpayers to claim a credit against their state income tax for each qualified dependent, with the credit amount equal to the target foundation allowance specified in the state school aid act. To be considered a "qualified dependent," a child must be between 5 and 18 years old, not enrolled in a public school during the tax year, and demonstrate proficiency in reading and math through state or private assessments. If the credit amount exceeds the taxpayer's tax liability, the excess will be refunded. The bill requires taxpayers to provide reasonable proof that their dependent meets the qualification criteria. This legislation appears to provide financial support to families who choose alternative educational approaches for their school-aged children, such as homeschooling or private schooling, by offering a tax benefit equivalent to the per-student funding that would typically be allocated to a public school for that child.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0118