Michigan HB4370 proposes a tax credit for sales and use tax paid on textbooks for eligible students.

Michigan HB4370 amends the Michigan income tax law to allow eligible students to claim a credit for sales and use tax paid on textbooks. Eligible students include those awarded a federal Pell grant and enrolled in an institution of higher education in Michigan. The credit can be claimed for tax years starting after January 1, 2026, and can be used to offset the taxpayer's tax liability, with any excess refunded. The bill defines terms such as "eligible student," "eligible institution," and "textbook.

Michigan HB4370 proposes a tax credit for sales and use tax paid on textbooks for eligible students.

Michigan HB4370 amends the Michigan income tax law to allow eligible students to claim a credit for sales and use tax paid on textbooks. Eligible students include those awarded a federal Pell grant and enrolled in an institution of higher education in Michigan. The credit can be claimed for tax years starting after January 1, 2026, and can be used to offset the taxpayer's tax liability, with any excess refunded. The bill defines terms such as "eligible student," "eligible institution," and "textbook.