Bill Text: MI HB5731 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Individual income tax: credit; working parent credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 272a.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced) 2024-05-16 - Bill Electronically Reproduced 05/16/2024 [HB5731 Detail]
Download: Michigan-2023-HB5731-Introduced.html
HOUSE BILL NO. 5731
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding section 272a.
the people of the state of michigan enact:
Sec. 272a. (1) Subject to the limitations under this section, for tax years that begin on and after January 1, 2024, a qualified taxpayer may claim a credit against the tax imposed by this part as follows:
(a) $5,000.00 for each qualified dependent of the taxpayer who is 3 years of age or less on the last day of the tax year for which the credit is claimed and for which an exemption was claimed under section 30(2)(b) for that same tax year.
(b) $2,500.00 for each qualified dependent of the taxpayer who is over 3 years of age but 6 years of age or less on the last day of the tax year for which the credit is claimed and for which an exemption was claimed under section 30(2)(b) for that same tax year.
(2) A taxpayer shall not claim a credit under this section for more than 3 qualified dependents in a single tax year.
(3) If the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability must be refunded.
(4) As used in this section:
(a) "Earned income" means that term as defined under section 32 of the internal revenue code.
(b) "Qualifying child" means that term as defined in section 152 of the internal revenue code.
(c) "Qualified dependent" means a dependent who is a qualifying child.
(d) "Qualified taxpayer" means a taxpayer who has earned income of at least $10,000.00 for the tax year.
