The UTTC has several distinct benefits:
The UTTC will vastly expand parental choice in education in Michigan, bringing with it the dynamics of consumer choice and a competitive educational marketplace. It will result in marked increases in educational quality, educational opportunity, and parental involvement.
The UTTC overcomes the shortcomings of traditional tuition tax credits by allowing both parents and non-parents to obtain tax relief when they support a student at an alternative school. By allowing the credit to be applied to three state taxes by any taxpayer, the additional money that could be dedicated to alternative school education would be significant. For Fiscal Year 1996-97, for example, the amount would be over $7.5 billion.68 Friends and relatives of a student could pay all or part of the student’s tuition at an alternative school and receive credit against their Individual Income tax, state education property tax, or Single Business Tax. A corporation could also pay tuition and receive a tax credit against its Single Business Tax or state education property tax. The only cost to such taxpayers of assisting parents and students will be the minimal time required to complete the paperwork associated with claiming the credit.
The UTTC will have no effect on the revenues of municipal governments such as cities, counties, townships, and villages. Because revenues from the Individual Income tax, state education property tax, and Single Business Tax all accrue to the state of Michigan, the credits will not reduce local revenue.