Bill > HB4055

This bill amends Michigan's Income Tax Act by introducing a new child tax credit provision for tax years beginning on or after January 1, 2025. Specifically, the bill allows taxpayers to claim a credit equal to 50% of the federal child tax credit claimed on their federal tax return for the same tax year. If the credit amount exceeds the taxpayer's total tax liability for that year, the excess amount will be refunded to the taxpayer. The federal child tax credit (referenced as "section 24 of the internal revenue code") is a existing tax benefit that provides financial support to families with qualifying children, and this Michigan legislation essentially creates a state-level version that mirrors half the value of the federal credit. By making the credit refundable, the bill ensures that lower-income families who may not have a full tax liability can still benefit from the credit.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4055