Bill > HB4488

This bill introduces a new working parent tax credit for Michigan taxpayers with young children, providing a $5,000 credit for each qualified dependent who is 3 years old or younger in tax years beginning on or after January 1, 2025. To be eligible, taxpayers must have earned at least $10,000 in the tax year and can claim the credit for no more than 3 qualified dependents annually. The credit is refundable, meaning that if the credit amount exceeds the taxpayer's tax liability, the remaining balance will be refunded. A qualified dependent is defined as a "qualifying child" under the Internal Revenue Code, which typically includes biological, adopted, or stepchildren who meet certain age, residency, and relationship criteria. The bill uses specific tax terminology like "earned income" and "qualifying child" as defined by federal tax law, ensuring alignment with existing federal tax definitions and providing a financial support mechanism for working parents with very young children.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4488