LANSING, Mich. — The Michigan Senate on Thursday passed 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 younger than 19 years old.
“This is real tax relief for every hardworking Michigan family who has had to weather the storm over the past year,” said Runestad, R-White Lake. “A child tax credit will make a real difference for families in need. This is the least we can do to help hardworking families in our communities.”
SB 378 would establish a nonrefundable, $500 tax credit that can be claimed for each dependent through the age of 18. The tax credit would allow taxpayers to get back their own money paid on their taxes, dollar for dollar, up to $500 per dependent.
The credit comes with a four-year sunset, so Michiganders could claim the credit for tax years 2022 through 2025.
“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 stand up 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, which passed with bipartisan support, would provide actual help, incentivize hard work, and make a real difference for parents and families right now.”
SB 378 now heads to the Michigan House for consideration.