Bill > SB0308

This bill creates a new working parent tax credit for Michigan taxpayers with young children, providing a $5,500 tax credit for each qualified dependent who is 4 years old or younger, with some important conditions. To be eligible, a taxpayer must have a household income at or below 150% of the state median income, and cannot have received payments from the Rx Kids program (a specific child support initiative) during the same tax year. The bill establishes a program where taxpayers can receive monthly advance payments of this credit, based on estimated amounts from their previous year's tax return. These payments can be made electronically or via check, and if the total credit exceeds the taxpayer's tax liability, the remaining amount will be refunded. The credit will begin for tax years starting January 1, 2025, and the monthly advance payments will be adjusted as needed by the state department to account for any previous over or underpayments. The bill defines key terms like "qualified dependent" and "state median income" to provide clarity on who can benefit from this tax credit, with the primary goal of supporting working parents with young children.

Housing and Urban Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0308