Michigan House Bill HB5264

Michigan 2023-2024 Regular Session

• Introduced: 10/26/23
• Refer: 10/26/23

Caption

Individual income tax: credit; child tax credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 275.

Impact

If enacted, HB5264 would directly influence the financial obligations of taxpayers in Michigan, particularly families with children. By permitting a state-level credit based on the federal child tax credit, the bill intends to complement existing federal tax policies while providing additional financial relief to Michigan taxpayers. Any excess of the allowed credit over the taxpayer's state tax liability would be refunded, thereby enhancing the potential benefits for families who qualify.

Summary

House Bill 5264 seeks to amend the Income Tax Act of 1967 by adding a new section, specifically focusing on tax credits related to child tax credit provisions as outlined under federal law. The bill allows taxpayers to claim a credit against their state tax liability that equals 50% of the credit claimed under Section 24 of the Internal Revenue Code for the same tax year. This provision aims to ease the tax burden on families eligible for the federal child tax credit by allowing them to benefit at the state level as well.

Contention

While the bill appears straightforward, there may be points of contention regarding its fiscal impact on state revenues and budget allocations. Critics might argue that providing such credits could reduce the state's tax income significantly, leading to budget deficits. Supporters, on the other hand, would likely view the bill as a necessary step towards supporting families and making Michigan's tax system more equitable and accessible, particularly in light of increased costs of living.

Stakeholder_feedback

There may be differing opinions among stakeholders regarding the prioritization of tax credits during budget discussions. Advocates for family support and tax fairness would likely support HB5264, whereas fiscal conservatives might call for greater scrutiny of tax credits, citing potential long-term economic implications for state funding.