Legislation signed this week by Governor Gretchen Whitmer will greatly increase the state’s Earned Income Tax Credit. Michigan League for Public Policy Fiscal Policy Director Rachel Richards tells us the credit was capped at a 6% match of the federal EITC, although it was supposed to be 20% under legislation signed by former Governor Jennifer Granholm. Whitmer’s legislation, signed Tuesday, brings that match up to 30% of the EITC. Richards says this will mean the average state EITC for a low income family will go from $150 to $750.
“It’s huge for working families around the state,” Richards said. “$750 goes a lot further than $150, and this is money that families use for daily needs like groceries or things for their kids. It also goes into making large purchase or a vehicle repair. This is money that families will typically spend in their local communities, so communities in which they live and work.”
Richards says the league has long called for the state EITC to be expanded. Around 700,000 Michigan families qualify for the Earned Income Tax Credit. Eligibility is determined when filing taxes.
