The Michigan Legislature is considering a bill to eliminate Michigan’s earned income tax credit (EITC). The legislation, House Bill 4609, is currently on the floor of the Senate and is eligible to be voted on when they convene.

The Michigan EITC has been around since 2008. It uses the federal EITC to determine the amount Michigan tax payers receive. For the 2008 tax year, it was 10% of the federal tax credit. In 2009 and 2010, it increased to 20%, however the legislature decreased it to 6% beginning with the 2011 tax year. To claim the credit, a taxpayer must have earned income from either a job or self-employment.

House Bill 4609 was passed by the House earlier this year as part of its original road funding plan. The Senate considered it and passed it out of committee, but ultimately did not vote on the bill to eliminate the Michigan EITC.

Since House Bill 4609 can be voted on by the Senate at any time, it is important that you let your state senators know your position on the state EITC and how, while it may only be 6% of the federal EITC, even $100 – $200 means a lot to a household living on the financial edge. Please call or email your state senator today and let them know how the EITC impacts your clients. Better yet, encourage your clients to contact their state senators too. Hearing from constituents and voters is the only way the Michigan EITC can be saved. To find your (or your client’s) state senator (enter your street address here). 

For more on the Michigan EITC, and talking points, check on the Michigan League for Public Policy’s EITC page and CEDAM’s infograph which highlights the impact of the EITC.


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Updated on September 8, 2015.