Michigan EITC is created

The Granholm Administration pushed for passage of a state Earned Income Tax Credit (EITC) to allow working families to receive an additional credit on their Michigan state income taxes.

The Michigan EITC is modeled after the federal tax credit and provides more than 750,000 working families who qualify with a state credit equal to 20 percent of their federal credit.

A 2009 study by the Anderson Economic Group estimated that every dollar received by Michigan’s working families through the EITC generated $1.67 in economic activity in their local communities.