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2005 Senate Bill 453: Establish state earned income tax credit

Public Act 372 of 2006

Introduced by Sen. Nancy Cassis (R) on May 3, 2005
To establish a state earned income tax credit (EITC), which would provide a refundable credit (meaning that a check is sent to the taxpayer for the balance of the credit exceeding taxes owed) equal to 10 percent of the federal EITC. The federal EITC is a refundable credit (or “reverse income tax”) for low income workers. For a person with two or more children, it begins to phase out at an income level of $13,549 and ends at $34,458. These amounts are considerably less for those with no children. The size of the credit runs between $390 and $4,300 depending on tax status (2004 tax year figures).   Official Text and Analysis.
Referred to the Senate Finance Committee on May 3, 2005
Amendment offered in the Senate on August 30, 2006
To tie-bar the bill to Senate Bill 1364 and House Bill 6213, meaning this bill cannot become law unless those ones do also. These are the other bills in the "deal" made to get Democrats to approve immediate effect on the minimum wage "clean-up" legislation. The amendment was to a substitute adopted on a voice vote which increases the EITC from 10 percent of the federal level to 20 percent, phased in over two years.
The amendment passed by voice vote in the Senate on August 30, 2006
To establish a state earned income tax credit (EITC), which would provide a refundable income tax credit equal to 20 percent of the federal EITC in 2009, and 10 percent in 2008. The federal EITC is a refundable tax credit (or “reverse income tax”) for low income workers. The bill was part of a "deal" between legislative Republicans and Democrats to get the latter's support for immediate effect on House Bill 6213, which corrects unintended consequences of a bill that increased mandated private sector minimum wage levels, and in the process upset the balance of a law mandating that employers in certain industries must pay overtime rates for shifts lasting longer than eight hours.
Received in the House on August 30, 2006
Referred to the House on August 30, 2006
Motion by Rep. Chris Ward (R) on August 30, 2006
That the bill be placed on the order of Third Reading of Bills.
The motion passed 100 to 2 in the House on August 30, 2006.
    See Who Voted "Yes" and Who Voted "No".
Signed by Gov. Jennifer Granholm on September 22, 2006

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