Bill > HB4370

This bill creates a new tax credit for eligible students who purchase textbooks, effective for tax years beginning on or after January 1, 2026. The credit allows taxpayers to claim a refundable tax credit equal to the amount of sales or use tax paid for textbooks purchased by themselves or their dependents who are eligible students. An eligible student is defined as an individual who has been awarded a federal Pell grant and is enrolled in an eligible institution (which includes vocational schools and degree-granting colleges or universities in Michigan) while maintaining satisfactory academic progress. The bill also includes provisions for professional or graduate students who would have qualified for a Pell grant if they were undergraduates. Taxpayers must submit receipts and proof of eligibility to claim the credit, and if the credit amount exceeds their tax liability, the excess will be refunded. The definition of textbooks includes any book or written material required by an eligible institution for its courses, and the sales tax or use tax refers to taxes levied under Michigan's general sales tax and use tax acts.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4370