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Bill

SB 838

Individual income tax: credit; working parent credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 272a.

2023-2024 Regular Session Introduced by Stephanie Chang and 6 co-sponsors

Michigan bill creates a state income tax credit for working parents to provide household financial relief, pending details on eligibility and credit amounts.

REFERRED TO COMMITTEE ON HOUSING AND HUMAN SERVICES
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Bill Summary · SB 838

Legislative bill overview

SB 838 proposes to amend Michigan's income tax code by creating a new tax credit for working parents. The bill adds Section 272a to the Michigan Tax Code, establishing a mechanism to provide financial relief to parents through the state income tax system. Specific details about credit amount, income limits, and eligibility criteria are not provided in the bill summary available.

Why is this important

Working parent tax credits directly affect household finances for a significant portion of Michigan's population, potentially increasing disposable income for childcare, education, or other family expenses. This type of credit can influence workforce participation decisions, particularly for lower and middle-income families, and represents a policy choice about how the state allocates tax revenue.

Potential points of contention

  • Revenue impact and cost: The bill's fiscal cost to the state budget is unclear without seeing the full legislation, making it difficult to assess whether it competes with other state priorities or requires tax increases elsewhere
  • Definition of eligibility: Questions about what qualifies as "working parent," income thresholds, number of children required, and treatment of various family structures (single parents, same-sex couples, guardianship situations) will significantly affect who benefits
  • Credit generosity vs. fairness: Debate over whether the credit amount is meaningful, how it compares to other states' versions, and whether it adequately addresses childcare costs versus serving as a modest tax break

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

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