Rep. Hammoud Bill Creates Student Loan Tax Deduction
LANSING — State Rep. Abdullah Hammoud (D-Dearborn) has introduced House Bill 5074, which would amend the Income Tax Act of 1967 to allow for student loan tax deductions. The bill would allow taxpayers to deduct the amount paid in the tax year on qualified education loans up to $5,000 for an individual or $10,000 for joint filers.
“The cost of a college education has increased exponentially throughout the years,” said Hammoud. “In addition to providing much-needed tax relief, this bill would provide the state a tool to help retain our talent in a competitive market. In today’s economy, talent is the number one determinant for a major corporation selecting Michigan as a place to do business.”
Essentially, this proposal would provide relief up to $212.50 for an individual and $425 for joint filers. Additionally, the deduction would apply only to individuals who attended a qualified college within the state of Michigan.