State Senator Stephanie Chang introduced legislation to allow college students a tax credit to offset education costs.
Senate Bill 797 would provide a tax credit to Pell Grant-eligible students enrolled in a postsecondary institution.
The current law states that textbooks purchased for students in K-12 are exempt from Michigan sales tax. However, that same exemption is not afforded to those pursuing higher education.
“Michigan can, and must, do more when it comes to helping students pursue college degrees or career technical education so they can graduate on time, and hopefully with less debt,” Sen. Chang said. “This tax credit will help offset one of many financial barriers that students, and especially low-income students, face when considering the cost of postsecondary education. I am proud to sponsor this legislation.”
The bill would allow students to receive an income tax credit equal to the amount of sales and use taxes they pay on purchased or rented textbooks required for class.
Federal Pell Grants usually are awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate, or professional degree.
