LANSING, Mich. — The Michigan Senate Finance Committee on Wednesday voted unanimously to approve legislation that would provide a child tax credit for hardworking Michigan families.
Senate Bill 378, sponsored by Sen. Jim Runestad, would establish a $500, nonrefundable tax credit for every child in a family up to 19 years old.
“This is commonsense assistance for hardworking Michigan families who have struggled over the past year,” said Runestad, R-White Lake. “Working families are the backbone of our state and our future. A child tax credit will provide targeted tax relief for families in need.”
SB 378 would establish a nonrefundable, $500 tax credit that can be claimed for each dependent through the age of 19. The tax credit would allow taxpayers to get back their own money paid on their taxes, dollar for dollar, up to the $500 per dependent.
The credit comes with a four-year sunset, so Michiganders could claim the credit for tax years 2021 through 2024.
“Families need help after more than a year of job losses, school and day-care closures, increased home education costs, wage and hour reductions, and increased mental health needs,” Runestad said. “We ought to do whatever we can to fight for hardworking families and the most vulnerable, and a child tax credit does just that.
“We can invest in families who live and work in Michigan, so they stay and can afford to raise their family here. This child tax credit would provide real tax relief, incentivize hard work, and invest in Michigan families right now when they need it most.
“I look forward to getting this legislation passed and making a real difference for families in our community.”
SB 378 now moves to the Senate floor for consideration.