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Bill

SB 308

Individual income tax: credit; working parent tax credit and advanced monthly payments of that credit; create and provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 272b.

2025-2026 Regular Session Introduced by Kevin Hertel

Michigan bill creates working parent tax credit with monthly advance payments to reduce tax burden on families with dependent care costs.

REFERRED TO COMMITTEE ON HOUSING AND HUMAN SERVICES
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Bill Summary · SB 308

Legislative bill overview

SB 308 proposes creating a new working parent tax credit under Michigan's income tax code and establishes a system for advanced monthly payments of this credit. The bill amends the Michigan Tax Code (1967 PA 281) by adding a new section specifically designed to provide tax relief to working parents.

Why is this important

Tax credits for working parents directly reduce the tax burden on families with dependent care costs and can improve household cash flow through monthly advance payments rather than waiting for annual tax refunds. This policy mechanism affects both state revenue and the financial accessibility of work for lower and middle-income parents.

Potential points of contention

  • Revenue impact: The fiscal cost to Michigan's state budget is unclear without knowing the credit amount, income thresholds, and eligibility requirements, which aren't specified in this summary
  • Definition and eligibility criteria: Questions remain about what qualifies as "working parent," household income limits, number of dependents required, and whether single parents and two-income families are treated equally
  • Administrative burden: Implementing monthly advance payment systems requires new state infrastructure and creates potential for overpayments that must be reconciled at tax time, adding complexity for both filers and the tax administration

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

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