206.272 Earned income tax credit; amount equal to federal credit; refund.

476 words·~2 min read·/mi/chapter-206/206-272

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Sec. 272.

(1)A taxpayer may credit against the tax imposed by this act an amount equal to the specified percentages of the credit the taxpayer is allowed to claim as a credit under section 32 of the internal revenue code for a tax year on a return filed under this act for the same tax year:

(a)For tax years that begin after December 31, 2007 and before January 1, 2009, 10%.

(b)For tax years that begin after December 31, 2008 and before January 1, 2012, 20%.

(c)For tax years that begin after December 31, 2011 and before January 1, 2023, 6%.

(d)For tax years that begin after December 31, 2022, 30%.

(2)For the 2022 tax year only, a taxpayer that claims a credit under this section on the taxpayer's return filed under this part for the 2022 tax year is entitled to an additional credit in an amount equal to 24% of the credit the taxpayer is allowed to claim as a credit under section 32 of the internal revenue code for the 2022 tax year. A taxpayer shall not claim this additional credit on the taxpayer's return filed under this part for the 2022 tax year or file an amended return for the 2022 tax year to claim this additional credit. In a form and manner as determined by the department, the department shall calculate the amount of the additional credit that each taxpayer is entitled to receive under this subsection. The amount of the additional credit calculated under this subsection must be refunded as soon as practical as provided in section 30 of 1941 PA 122, MCL 205.30. Notwithstanding section 352, the department shall issue any refund under this subsection to the taxpayer in the form of a fully negotiable check.

(3)If the credit allowed by this section exceeds the tax liability of the taxpayer for the tax year, the state treasurer shall refund the excess to the taxpayer without interest, except as provided in section 30 of 1941 PA 122, MCL 205.30.

History: Add. 2006, Act 372 , Imd. Eff. Sept. 22, 2006 ;-- Am. 2011, Act 38 , Eff. Jan. 1, 2012 ;-- Am. 2023, Act 4 , Eff. Feb. 13, 2024

Compiler's Notes: Enacting section 1 of Act 469 of 2014 provides:"Enacting section 1. This amendatory act does not take effect unless House Joint Resolution UU of the 97th Legislature becomes a part of the state constitution of 1963 as provided in section 1 of article XII of the state constitution of 1963."House Joint Resolution UU was presented to the electors as Proposal 15-1 at the May 5, 2015 special election. The proposal to amend the constitution was not approved by the voters and Act 469 of 2014 does not go into effect.