Individual income tax: credit; credit for certain qualified dependents; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

This bill creates a new tax credit for Michigan residents with qualified dependents starting in the 2026 tax year. The credit equals 50% of the state school aid target foundation allowance for each dependent who is between 5 and 18 years old, not enrolled in public school, and has demonstrated proficiency in reading and math. If the credit amount is larger than the taxpayer's tax liability, the excess will be refunded to the taxpayer. The Department of Treasury may require proof that a dependent meets the eligibility requirements.