Introduced
by
To authorize a child care tax credit against the Michigan income tax that is based on the credit authorized by the 2017 federal income tax reform law, with the value of the state credit declining as an individual’s adjusted gross income rises above $40,000. The federal credit is also means-tested and is based on a percentage of child care expenses that are related to the taxpayer having a job, up to $6,000, or $3,000 if there is just one dependent. The Michigan credit would be "refundable,” meaning the taxpayer would get a check from the state for the amount the credit exceeded their income tax liability.
Referred to the Committee on Tax Policy
