Bill > HB5775

This bill amends the Income Tax Act of 1967 to allow for a new deduction on state income taxes for certain "talent attraction incentives," which include post-graduation scholarship grants. Specifically, for tax years beginning on or after January 1, 2027, individuals who relocate to Michigan for employment and establish a primary residence here may deduct any talent attraction incentive received. This includes post-graduation scholarship grants, which are defined as grants from qualified organizations that repay a portion of an individual's applicable education loan, provided the individual relocates to Michigan for employment, the organization makes payments directly to the loan holder, and the grant isn't for an employee of the granting organization. The bill also clarifies that interest paid as part of such a post-graduation scholarship grant, if deducted under this new provision, must be added back to income for tax purposes.