Bill > HB4487

This bill establishes a new working parent tax credit for Michigan taxpayers with young children. Specifically, for tax years beginning on or after January 1, 2025, qualified taxpayers can claim a $2,500 tax credit for each dependent child between 4 and 6 years old, with a maximum of 3 children per tax year. To be eligible, the taxpayer must have earned at least $10,000 in the tax year and claim an exemption for the dependent. The credit is fully refundable, meaning that if the credit amount exceeds the taxpayer's tax liability, the remainder will be refunded. The bill defines key terms by referencing federal tax code definitions, such as "earned income" from Section 32 of the Internal Revenue Code and "qualifying child" from Section 152. This tax credit is designed to provide financial support to working parents with young children, potentially helping to offset childcare and other early childhood expenses.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4487