Earned Income Tax Credit – Michigan

Posted on April 20, 2011 by townsend

• Snyder agrees to $25 per child tax credit, By Paul Egan, April 20, 2011, Detroit News: “The Snyder administration has agreed to a House lawmaker’s proposal that would restore part of the Earned Income Tax Credit, Lt. Gov. Brian Calley said today. Calley said Gov. Rick Snyder is prepared to support a proposal from Rep. Jud Gilbert, R-Algonac, that would give a tax credit of $25 per child for families that would have been eligible for the EITC. Snyder’s Feb. 17 budget proposed eliminating the state version of the credit, which is equal to 20 percent of the federal credit for the working poor. Adding the $25-per-child credit is expected to cost about $20 million, Calley said. He said changes Snyder made to his proposal for the Homestead Property Tax Credit give another $80 million in relief to low-income earners. Eliminating the EITC is expected to save the state about $340 million. Families that received the credit received an average of $432 last year…”
• Gov. Rick Snyder agrees to restore part of Earned Income Tax Credit, By Dawson Bell, April 20, 2011, Detroit Free Press: “A new change agreed to in Gov. Rick Snyder’s plan to overhaul Michigan’s tax code would restore a portion of the Earned Income Tax Credit for the working poor, administration and legislative officials said today. The administration has agreed to give EITC-eligible income tax filers a $25/child credit, Lt. Gov. Brian Calley said in testimony before the House Tax Policy Committee. Coupled with changes to Snyder’s original proposal announced last week that more narrowly target the Homestead Tax Credit to low-income filers, the revised proposal would provide about $100 million in payments to the working poor…”