Individual income tax: credit; credit for sales and use tax paid for textbooks purchased by eligible students; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 280.

This bill creates a new tax credit for Michigan residents who purchase required textbooks for college or vocational school courses. To qualify, the student must be enrolled in an eligible institution and currently receiving a federal Pell grant or be a graduate student with financial need who would have qualified for one. The credit allows taxpayers to reduce their state income tax liability by the amount of sales or use tax paid on these books, with any excess amount refunded as a cash payment. The law also requires taxpayers to provide receipts proving the purchase and the student's eligibility if requested by the state department.