For Immediate Release
Jan. 29, 2021
Contact:
Alex Rossman
arossman@mlpp.org
517-775-9053
Michigan League for Public Policy also shares county EITC fact sheets, recommendations to expand and improve state credit
LANSING—The Michigan League for Public Policy joined organizations across the state and country today in celebrating the 15th annual EITC Awareness Day, highlighting the new federal lookback provision for the Earned Income Tax Credit (EITC) to help taxpayers impacted by COVID-19. The Earned Income Tax Credit is a federal credit available to families with low and moderate incomes.
“The EITC helps workers pay for things like transportation costs or child care and other daily necessities, and because the credit is refundable, money is put right back into local economies,” said Gilda Z. Jacobs, President and CEO of the Michigan League for Public Policy. “The EITC is a proven anti-poverty tool that rewards work and helps workers in every area of the state and in a variety of industries take steps toward self-sufficiency. And research shows that the EITC not only helps workers, but their kids as well, both immediately and for the rest of their lives.”
In December 2020, the federal government passed a comprehensive COVID-19 relief bill that included what is known as the EITC lookback provision. This provision allows tax filers who were eligible to claim the federal EITC for 2019 to make a choice of whether to use their 2019 wage and self-employment income or their 2020 wage and self-employment income to calculate their EITC and/or Child Tax Credit. If a taxpayer’s income declined in 2020 in such a way that the amount of EITC they could claim is reduced, then that taxpayer will be able to claim the higher credit from 2019. This is intended to limit COVID-19’s impact on a filer’s EITC, regardless of the pandemic’s impact on their income.
In practice, the filer or preparer will enter both 2019 and 2020 earned income into their worksheet or chosen tax software. If the resulting 2019 earned income is greater than the 2020 earned income, then the filer or preparer may choose to use that prior year earned income amount to calculate the EITC.
Michigan supplements the federal credit with its own state credit, but it’s one of the weakest state EITCs nationwide. It once was 20% of the federal credit, but is now just 6%. In tax year 2018, more than 729,600 families statewide received an average state credit of $150, putting $110 million back into the local economy. Using the most recent tax data available (2018), the Michigan League for Public Policy has developed county fact sheets on the state EITC and its local impact.
To maximize the Michigan EITC’s benefit, the League continues to advocate for the following improvements: restore the state EITC to 20% of the federal credit, a change that would have meant an average of $350 more per taxpayer and an extra $266 million back to the state economy in 2018; expand the credit to students, caregivers, all immigrant workers and workers not raising children in their homes; and improve outreach to inform residents of their eligibility for the credit (nearly 1 in 5 eligible Michigan workers do not claim the EITC).
For those taxpayers that make less than $57,000 a year, Michiganders can take advantage of the Internal Revenue Service’s Volunteer Income Tax Assistance (VITA) program to get free help preparing their taxes.
BACKGROUND:
EITC Awareness Day began in 2006 and is a national effort organized by the IRS and its partners to promote the EITC and ensure every qualified worker claims and receives their tax credit.
The federal Earned Income Tax Credit was signed into law in 1975 by Michigan’s own President Gerald R. Ford. Created by a Republican president and a Democratic majority in Congress, the EITC has continued to have strong bipartisan support ever since. The six U.S. presidents who succeeded President Ford all signed a federal EITC expansion into law.
In addition to the federal EITC, a state EITC based on the federal credit was established in 2006 under similarly bipartisan circumstances. The Michigan EITC was created under Republican majorities in the Michigan House and Senate, spearheaded by former West Michigan Senator and Senate Majority Leader Ken Sikkema, and signed into law by Gov. Jennifer Granholm.
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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
