Asset Building Legislation
Every two years, thousands of bills are introduced in the Michigan legislature. One of the roles of the ABPP is to track legislation that impacts the ability of Michigan’s working families to achieve lasting and sustainable financial security.
Below, the ABPP will monitor legislation and issues before the 95th Legislature (2009-2010) that either support or threaten asset-building opportunities for Michigan’s working families.
Check back in 2010, as legislation will be added to this page.
Income Support: Protect the State Earned Income Tax Credit (EITC)
This EITC is a refundable federal income tax credit that eases the tax burden on working families and individuals. It increases with income up to a maximum credit amount, then phases out as the taxpayer earns enough income to pass the poverty threshold. In 2005, the average EITC in Michigan was roughly $1,775 per filer and, for the 2008 tax year, the maximum EITC amount is $4,824.
The Michigan EITC is a refundable tax credit for an individual’s state income tax liability. In the 2008 tax year, it was 10% of the federal credit amount. For 2009 and beyond, it is scheduled to be 20% of the federal credit. However, as state lawmakers look to balance the budget, some are considering freezing the rate at 10%.
The ABPP does not support freezing the Michigan EITC.
- ABPP Talking Points on Michigan EITC (June 25, 2009)
- Michigan League for Human Services Press Release
Financial Education: Refund Anticipation Loan Protection
A package of bills (HB 4166 and 4607; SB 189) passed in 2009 strengthens consumer protections for income tax Refund Anticipation Loans (RALs).
The bills require certain information regarding the loan (e.g. fees, costs, the fact that an RAL is a loan and not an actual tax return) to be disclosed to consumers prior to the transaction. The legislation also allows consumers to rescind a loan within 24 hours of its issuance and prohibits certain conduct on the part of a person facilitating the loan.
Both bills were passed by the state legislature and signed into law by governor Jennifer Granholm on July 14, 2009, becoming PA 66’09 and PA 67’09 respectively.
- CEDAM’s Testimony before the Michigan House Committee on Banking and Financial Services (March 12, 2009)
- ABPP Director Ross Yednock’s Testimony before Michigan House Committee on Banking and Financial Services (June 24, 2009)
- ABPP Talking Points on RAL legislation (June 25, 2009)
Financial Education in Schools
House Bill 4410 would amend the Revised School Code to provide a “general diploma curriculum” as an alternative to the Michigan high school graduation requirements. Financial literacy courses could count for a math credit in the new general diploma curriculum.
Career Training and Microenterprise Support: Center for Microenterprise Development
House Bill 5908 would create the Center for Microenterprise Development and the Michigan Microenterprise Fund to make loans or grants to microenterprise development organizations in the state.