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Bill

SB 144

Individual income tax: credit; earned income tax credit; increase. Amends 1967 PA 281 (MCL 206.1 - 206.846) by adding sec. 272a.

2023-2024 Regular Session Introduced by Sarah Anthony and 15 co-sponsors

Michigan expands earned income tax credit for low-to-moderate income working families, increasing direct tax relief and household earnings support through amended state tax code.

referred to Committee on Tax Policy
#individualincometax:credit #individualincometax:other
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WeVote Research Nonpartisan
Bill Summary · SB 144

Legislative bill overview

SB 144 amends Michigan's income tax code to increase the state's Earned Income Tax Credit (EITC), a refundable tax credit for low- to moderate-income working individuals and families. The bill passed the Michigan Senate on April 27, 2023, with bipartisan support (27 yeas, 10 nays) and was referred to the House Committee on Tax Policy for further consideration.

Why is this important

The EITC is designed to reduce tax burden and supplement wages for working people earning below certain income thresholds. Expanding it would provide direct financial relief to lower-income workers and families, potentially reducing poverty and improving household economic stability while incentivizing work participation.

Potential points of contention

  • Fiscal cost: Increasing the credit expands state tax expenditures, reducing general fund revenue or requiring offsetting budget cuts or tax increases elsewhere
  • Income targeting: Questions about whether the credit's income thresholds and phase-out rates appropriately target intended beneficiaries and whether expansion is sustainable long-term
  • Implementation complexity: Changes to tax administration systems and increased audit requirements to prevent fraud or improper claims add administrative burden

Compiled from official sources — confirm details with the bill’s official record.

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