2009 House Bill 4514

Require six months residency for EITC

Introduced in the House

March 4, 2009

Introduced by Rep. Michael Lahti (D-110)

To require a person to be a state resident for at least six months to qualify for a state <a href="http://www.michiganvotes.org/2005-SB-453">earned income tax credit</a>.

Referred to the Committee on Tax Policy

March 18, 2009

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Passed in the House 106 to 3 (details)

Received in the Senate

March 19, 2009

Referred to the Committee on Finance

June 9, 2009

Reported without amendment

With the recommendation that the bill pass.

Oct. 8, 2009

Substitute offered

To adopt a version of the bill that uses it as a "vehicle" for suspending a scheduled increase in the value of the EITC.

The substitute passed by voice vote

Amendment offered by Sen. Nancy Cassis (R-15)

To tie-bar the bill to Senate Bills 838 and 884, meaning this bill cannot become law unless those ones do also. They would reduce the Michigan Business Tax surcharge, slighty reduce the value of film production subsidies, and authorize a "tax amnesty" period.

The amendment passed 19 to 13 (details)

Amendment offered by Sen. Jud Gilbert (R-25)

To phase in the suspended EITC increase over several years.

The amendment passed by voice vote

Passed in the Senate 20 to 13 (details)

To eliminate an increase in the <a href="http://www.michiganvotes.org/2006-SB-453">earned income tax credit</a>, which under current statute will go from 10 percent to 20 percent of the federal EITC for the 2009 tax year. The EITC is a refundable credit (or “reverse income tax”) for low income workers. It is estimated that the increase add $160 million to the current budget shortfall. The bill authorizes phasing in an increase over four years.

Motion

To give the bill immediate effect.

The motion passed 21 to 12 (details)

Received in the House

Oct. 13, 2009

Feb. 23, 2010

Substitute offered by Rep. Michael Lahti (D-110)

To replace the Senate-passed version, which postponed a doubling of the EITC, with the original House-passed version, which would just require six-month residency for eligibility.

The substitute passed by voice vote

Amendment offered by Rep. Brian Calley (R-87)

To extend the proposed elibility requirement to two years of residency.

The amendment failed by voice vote

Passed in the House 101 to 5 (details)

To not postpone a doubling of the EITC (as passed by the Senate), and again pass the original House version, which would just require six-month residency for earned income tax credit eligibility.

Received in the Senate

July 1, 2010