In Earned Income Tax Credit, News Releases, Tax and Budget

For Immediate Release
March 7, 2023

Contact: Laura Ross
lauramr@mlpp.org
517-281-1084

League applauds today’s bill signing that will boost state Earned Income Tax Credit
Law will bring tax relief to over 700,000 working families in Michigan

LANSING—The Michigan League for Public Policy issued the following statement on this morning’s signing of HB 4001, which includes an increase of the state Earned Income Tax Credit (EITC) from 6% to 30% of the federal tax credit for working families. The statement can be attributed to League President and CEO Monique Stanton.

“Today, Gov. Gretchen Whitmer solidified her commitment to improving outcomes for Michigan’s families. Boosting the EITC to 30% of the federal credit is a huge win for working people in our state. It means $750 on average for families struggling to make ends meet due to low wages. That could pay for a month of healthcare for a family, nine months of diapers, or ten months of internet. Over 700,000 families around the state, in rural, suburban and urban areas, will benefit from this new law. Plus, Michiganders spend their tax credits at local businesses, keeping money flowing through our towns and cities and strengthening the economy.”

“Gov. Whitmer’s signature today is a major milestone, coming after many years of her own efforts—first as a lawmaker and now as governor—to expand the EITC. The Michigan League for Public Policy and our partners are certainly celebrating—we have worked for over a decade along with lawmakers on both sides of the aisle and hundreds of advocates around the state to make this boost a reality. Because of a devastating cut that was made to the state credit in 2011, Michigan’s EITC has been one of the lowest in the country. Thanks to the governor and legislative leadership, working families in our state are finally getting the credit they deserve.”

Useful Links:

Statewide fact sheet showing the impact of the EITC at 6%, 20% and 30% of the federal credit

County-specific fact sheets showing the local impact of the EITC at 6%, 20% and 30% of the federal credit

League 2024 Earned Income Tax Budget Priority Data Sheet

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to use data to educate, advocate and fight for policy solutions that undo historic and systemic racial and economic inequities to lift up Michiganders who have been left out of prosperity. It is the only state-level organization that addresses poverty in a comprehensive way.