“Michiganders who work full-time but still can’t get ahead deserve to keep more of their hard-earned dollars,” Whitmer said in a statement. “This refund for working families is a game-changer.”


Need to Know

  • Whitmer’s proposal to increase the Michigan earned income tax credit would put an extra $350 per year in the pocket of the average recipient.
  • In 2011, Republicans slashed the benefit for working families in order to cut taxes for big corporations. The governor’s plan would restore the tax credit to its previous level. 
  • The plan would help 730,000 Michiganders, raise more than 22,000 people out of working poverty and benefit nearly 1 million kids, according to the governor’s office. 

MICHIGAN–Gov. Gretchen Whitmer on Wednesday called on Republican lawmakers to triple a tax credit for an estimated 730,000 working Michiganders and put an average of an extra $350 a year into the pockets of low- and middle-income individuals.

In her state of the state address, Whitmer proposed increasing Michigan’s state-level earned income tax credit (EITC) from 6% of the federal EITC–roughly around $2,500 per year on average–to 20%, which would give the average recipient about $500 a year when they get their tax refunds, instead of $150. 

Whitmer’s plan would restore the Michigan tax credit to its previous level. In 2011, Republicans slashed the benefit for working families in order to cut taxes for big corporations. 

“Michiganders who work full-time but still can’t get ahead deserve to keep more of their hard-earned dollars,” Whitmer said in a statement. “This refund for working families is a game-changer for so many Michiganders, and I know we can work together to get this done.” 

RELATED: Repealing Michigan’s Retirement Tax: This Is Gov. Whitmer’s Plan to Save Retirees $1,000 Per Year 

Restoring the EITC to its previous level would raise more than 22,000 Michiganders out of working poverty and benefit nearly 1 million kids, according to the governor’s office. 

Here are the current income limits to qualify for the EITC, per the IRS. It’s worth noting that the average amount of the credit can vary widely based on income and the number of children in the household.

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Screenshot of the IRS website

Whitmer’s announcement drew praise from numerous stakeholders, including the Michigan League for Public Policy, Michigan Association of United Ways, and the Michigan Catholic Conference. 

“The EITC does more to lift people out of poverty, while encouraging the dignity of work, than any other policy in state government,” Paul Long, President and CEO of the Michigan Catholic Conference, said in a statement. “We are eager to work with the Governor and those in the Legislature who have been working to advance the expansion of the EITC for many years.”