Bill > SB0321

This bill creates a new tax credit program for contributions to scholarship-granting organizations (SGOs) that participate in the student opportunity scholarship program. Starting in tax year 2025, taxpayers can claim a credit of up to 100% for contributions made to certified SGOs, with several key provisions. The credit requires a pre-approval process where taxpayers must submit a contribution plan to the state department for review, with applications processed in the order received. The total tax credits available are capped at $500,000,000 per fiscal year, with a potential 20% increase if 90% of credits are used in the previous year. Taxpayers can create multi-year contribution plans up to 4 years and can carry forward unused credits for up to 5 years. The bill requires detailed annual reporting to the legislature about the program, including information on the number of scholarship accounts opened, amounts awarded, and demographic details of scholarship recipients. Importantly, taxpayers who claim this credit must reduce their federal tax deduction for the same contributions, ensuring they cannot receive a double tax benefit. The bill is tied to another piece of legislation (Senate Bill 320) and will only take effect if that bill is also enacted into law.

Education

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0321