MI SB1036

Allows taxpayers to claim a credit against Michigan income tax equal to a specified percentage of the federal earned income tax credit allowed under Internal Revenue Code section 32 for tax years beginning after December 31, 2007.

Tax years beginning after December 31, 2007 and before January 1, 2009: credit is 10% of the federal earned income tax credit.

Tax years beginning after December 31, 2008: credit is 20% of the federal earned income tax credit (removes the previous January 1, 2012 expiration date and 6% reduction).

Excess credits that exceed the taxpayer's tax liability are refunded by the state treasurer without interest, consistent with existing tax refund provisions.

Takes effect January 1, 2012.