Senate Panel Approves Sen. O’Brien’s Michigan Families Tax Relief Bill

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LANSING, Mich. — The Senate Finance Committee on Tuesday heard testimony and unanimously approved Senate Bill 749, which would provide additional tax relief to Michigan families by creating a Michigan income tax credit for dependent care, such as care for children, elderly parents, or disabled family members.

“Caring for our loved ones can be a significant financial burden for many hardworking families,” said Sen. Margaret O’Brien, R-Portage. “This tax credit would save a typical Michigan family of four nearly $500 annually.”

SB 749 would amend the Income Tax Act to allow, beginning in tax year 2018, a Michigan income tax credit for dependent care that mirrors the one offered at the federal level. A qualifying dependent is defined as a dependent child 12 years old or younger, or a grown child, spouse, or elderly parent who is physically or mentally unable to care for themselves.

“Many have faced the challenge of providing adequate care for those who depend on them,” Sen. O’Brien said. “We would not spare any expense to make sure our loved ones receive the care they need. My legislation will help to ease the financial burden associated with providing this critical care.”

Sen. O’Brien’s legislation is part of a bill package, SBs 748-750, that helps to create tax relief for Michigan families. The legislation brings Michigan’s tax system in line with the federal government and ensures that Michigan families do not see a tax increase.

SB 749 now heads before the full Senate for approval.

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Photo caption (left): Sen. Margaret O’Brien, R-Portage, testified in front of the Senate Finance Committee on Jan. 16 in support of her legislation that would provide additional tax relief to Michigan families by creating a Michigan income tax credit for dependent care.

Photo caption (right): Sen. Margaret O’Brien, R-Portage, testified in front of the Senate Finance Committee on Jan. 16 in support of her legislation that would provide additional tax relief to Michigan families by creating a Michigan income tax credit for dependent care.