MI HB4662

Creates a refundable state child and dependent care credit for tax years beginning after December 31, 2021, based on the federal credit allowed under Internal Revenue Code section 21.

Credit percentages vary by adjusted gross income: 110% for income under $25,000; 100% for $25,000-$39,999; 80% for $40,000-$64,999; 20% for $65,000-$99,999; and 0% for $100,000 or more.

Excess credits that exceed a taxpayer's tax liability are refundable, allowing taxpayers to receive the credit amount as a refund if it exceeds their state income tax owed.