MI SB0838

Creates a $5,500 annual tax credit for each child age 3 or younger claimed as a dependent by qualified taxpayers, effective for tax years beginning January 1, 2024

Establishes a monthly advance payment program where the Department of Treasury makes equal monthly payments throughout the year based on the prior year's return, with written notice provided by January 31st

Allows advance payments to be deposited electronically or issued by check via first-class mail, with the department adjusting amounts as needed to correct overpayments or underpayments

Makes any credit amount exceeding the taxpayer's tax liability fully refundable to the taxpayer

Limits eligibility to taxpayers who claim the working parent credit under section 272 of the income tax act