Tax Reforms Headed to the Governor

Liz Gullett

Feb 17, 2023

The Senate voted in favor of legislation making changes to tax laws in Michigan and issues a $180 inflation relief check to all Michigan households. After the House and Senate passed different versions of the bill, it was sent to conference committee. Last week, the House voted to adopt the conference report and the Senate followed suit this week. The bill expands the Working Families Tax Credit to 30% of the federal Earned Income Tax Credit. According to the Senate Democratic Caucus, this move will help 700,000 Michigan residents, who will see an average savings of $3,150 dollars. The legislation also makes changes to the retirement tax in the state, phasing it out over four years. Lastly, the bill invests $50 million in the state’s Housing and Community Development Fund and provides $50 million for Revitalization and Placemaking grants. The bill wasn’t given immediate effect, putting the fate of the $180 inflation checks for the current fiscal year in doubt.

The bill will be sent to Governor Gretchen Whitmer for her consideration.

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