LANSING — Governor Gretchen Whitmer is raising concerns over Republican efforts to tighten rules around the Earned Income Tax Credit (EITC), warning that the proposed changes could strip essential tax savings from more than 700,000 working families in Michigan.
On June 20, Whitmer highlighted newly released IRS data showing that EITC refunds saved Michigan families an average of $2,800 last year. In households with three or more children, the credit can reach up to $10,000. The Republican-led U.S. House budget includes new eligibility rules and certification procedures that Whitmer says are unnecessary and burdensome.
Under the proposal, families would need to pre-certify each child claimed for the credit every year and obtain an EITC certificate before filing. Critics say the added requirements will cause confusion and exclude eligible claimants.
The changes are projected to take effect in 2028 and could result in thousands of Michigan families losing access to the credit, particularly due to reduced IRS staffing and outreach.
Lt. Governor Garlin Gilchrist noted that Michigan expanded its version of the EITC — known as the Michigan Working Families Tax Credit — under Whitmer’s leadership, quintupling its value to an average refund of $3,150.
Additional programs backed by the administration include universal free school meals, expanded broadband, and tuition-free workforce education.
Whitmer says the state will continue fighting to protect the financial security of working families, calling the proposed EITC cuts a “direct threat” to Michigan’s progress on affordability. More information about the tax credit is available through the Michigan Department of Treasury or IRS.gov.