The bill amends the Income Tax Act of 1967 by adding a new section, 275, which introduces a tax credit for Michigan taxpayers. Starting from tax years that begin on or after January 1, 2025, taxpayers will be allowed to claim a credit equal to 50% of the credit they are eligible for under section 24 of the Internal Revenue Code. This provision aims to provide additional financial relief to taxpayers by allowing them to reduce their state tax liability based on their federal tax credits.

Furthermore, the bill stipulates that if the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded to the taxpayer. This ensures that taxpayers can benefit from the full value of the credit, even if it surpasses their state tax obligations. Overall, the proposed changes are designed to enhance the tax benefits available to Michigan residents, particularly in relation to their federal tax credits.

Statutes affected:
House Introduced Bill: 206.1, 206.847