MI HB4986

Allows taxpayers to credit a percentage of the federal earned income tax credit (EITC) under Internal Revenue Code section 32 against Michigan state income tax liability

For tax year 2021 only, increases the credit to 20% for taxpayers with no qualifying children and 25% for taxpayers with one or more qualifying children

For tax years beginning January 1, 2022 and thereafter, sets the credit at 20%

Removes the previous 6% credit rate that applied to tax years beginning after December 31, 2011

Requires the state treasurer to refund any credit amount exceeding the taxpayer's tax liability without interest