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Bill

SB 3

Individual income tax: credit; earned income tax credit; increase. Amends sec. 272 of 1967 PA 281 (MCL 206.272).

2023-2024 Regular Session Introduced by Sarah Anthony and 19 co-sponsors

Michigan bill increases state Earned Income Tax Credit for low-to-moderate income working individuals and families, providing direct tax relief while reducing state revenue.

referred to Committee on Tax Policy
#individualincometax:credit #individualincometax:other
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Bill Summary · SB 3

Legislative bill overview

SB 3 amends Michigan's tax code to increase the state Earned Income Tax Credit (EITC), which provides tax relief to low- and moderate-income working individuals and families. The bill modifies the existing credit structure under the Michigan Income Tax Act, with the specific increase amount determined by the substitute language (S-5) that was adopted by the committee.

Why is this important

The EITC is one of the largest anti-poverty programs in the United States, directly supplementing wages for working people below certain income thresholds. An increase in Michigan's state EITC would provide immediate tax relief to hundreds of thousands of working families, potentially reducing child poverty and economic inequality while maintaining work incentives.

Potential points of contention

  • Cost to state budget: Expanding the EITC reduces tax revenue; opponents may argue the state cannot afford this during economic uncertainty or competing budget priorities
  • Targeting debate: Questions about whether the credit increase should be uniform across all income levels or whether it should prioritize specific groups (families with children, single filers, etc.)
  • Program complexity: Increasing the credit may complicate tax administration and increase filing errors among eligible low-income populations who may lack access to tax preparation resources

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

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