Michigan’s Earned Income Tax Credit (EITC) is a proven program that working families with low-to-moderate incomes rely on. It keeps more money in family budgets to pay for necessities like food, transportation, housing, education, and child care. In tax year 2020, nearly 666,100 families statewide received an average credit of $135, putting over $90 million back into the local economy.

The pandemic hit working families the hardest. The pandemic’s economic impact has disproportionately affected part-time, hourly, and minimum wage workers, many of whom put their own health at risk to remain in the workforce while struggling to find affordable child care or pay for essentials. 2020 was an anomaly in many ways, and tax return data is no exception. Click here to read more about why this data must be analyzed carefully.

Increasing the EITC from its current level at 6% of the federal credit and expanding it to reach currently ineligible workers should be part of Michigan’s pandemic recovery plan. But the EITC should do more. Restoring the credit to its 2011 level (20% of the federal credit) would bring Michigan up to speed with other states. And increasing Michigan’s EITC to 30% of the federal credit would mean an average credit of $749 for these families, which they can use to stay current on bills or afford a car repair. Improving the EITC is a common-sense strategy to boost families, communities, and the economy.

Click on a county below to see the impact of the EITC.

Click here for a statewide fact sheet.