On Tuesday, March 7, 2023, Gov. Gretchen Whitmer joined Senate Majority Leader Winnie Brinks, Speaker of the House Joe Tate, and members of the Michigan Legislature to sign the Lowering MI Costs plan into law. The Lowering MI Costs plan rolls back the retirement tax, putting $1,000 back in the pockets of 500,000 households, and quintuples the Working Families Tax Credit, delivering an average combined tax refund of $3,150 to 700,000 families, directly benefiting nearly 1 million kids — almost half the kids in Michigan.
House Bill 4001, sponsored by State Rep. Angela Witwer (Delta Township), amends the Income Tax Act to eliminate the retirement tax over four years and ultimately deliver an average of $1,000 to 500,000 households. The bills also equalizes the exemption on both public and private pensions.
Working Families Tax Credit
House Bill 4001 will quintuple the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit to 30%, up from 6%. This expansion will deliver an average combined tax refund of $3,150 to 700,000 families, directly impacting nearly 1 million kids — almost half the kids in Michigan.