MI HB5640

Establishes a $5,500 annual tax credit for each qualified dependent (age 3 or younger) claimed on a taxpayer's return for tax years beginning January 1, 2024 and after.

Allows only "qualified taxpayers" who are eligible to claim the working parent credit under section 272 to claim this new dependent credit.

Creates a monthly advance refund payment program where the Department of Treasury makes monthly payments to eligible taxpayers based on the prior year's return, with payments made via direct deposit or check.

Requires the Department to notify taxpayers by January 31 each year of their advance refund payments and aggregate annual amount.

Any credit amount exceeding the taxpayer's tax liability for the year must be refunded to the taxpayer.