Nearly 700,000 families in Michigan that receive the state earned income tax credit may be eligible for a direct payment later this year.
Governor Gretchen Whitmer signed a bill that would significantly increase the Michigan earned income credit from 6 percent to 30 percent of the federal income tax credit.
However, the bill cannot take effect until next year. Republicans withheld votes because Democrats had included in the bill a provision to send money to a controversial business development fund.
State Senator Kristen McDonald Rivet (D-Bay City), who sponsored the new bill, said that it would provide a one-time direct payment to all families that had previously claimed the lower credit. The payment could be as much as $2,080 to a family of four.
If the bill passes the state House, it will go to Gov. Whitmer for her signature. This new measure aims to ensure that low-income families get the assistance they need.
Reporting for WGRT – Choze Powell
