The Michigan Earned Income Tax Credit (EITC) is a tax credit for families who work but have low earnings, with larger credits going to families with children. Michigan’s current EITC—at just 6% of the federal credit—provides a huge help to working families struggling to make ends meet by boosting after-tax incomes, pulling Michigan families above the poverty line and delivering long-lasting benefits to children in these families. In tax year 2017, more than 748,500 families statewide received an average credit of $150, putting $112 million back into the local economy. But it should do more; if the state EITC were doubled to 12% of the federal credit as Gov. Gretchen Whitmer has proposed, these same families would have received an average credit of $300. And fully restoring Michigan’s EITC to 20% of the federal credit—its 2011 level—would mean an average credit of $500 for these families.
Click on a county below to see the impact of the EITC.