2015 Senate Bill 5

Increase EITC

Introduced in the Senate

Jan. 20, 2015

Introduced by Sen. David Knezek (D-5)

To increase the state earned income tax credit from an amount equal to 6 percent of the federal EITC, to 20 percent. This is a “refundable” credit for low income workers (meaning that a check is sent to the taxpayer for the balance of the credit exceeding taxes owed). According to a House Fiscal Agency <a href="http://www.legislature.mi.gov/documents/2011-2012/billanalysis/House/pdf/2011-HLA-4361-8.pdf ">analysis</a>, an increase to 20 percent would cost $261 million annually.

Referred to the Committee on Finance