House committee hears bills to cut child costs: state child tax credit, childcare savings accounts, and baby-item tax exemptions

Representatives sponsoring a package of bills aimed at reducing the cost of raising children explained the measures to the Michigan House Committee on Economic Competitiveness and answered committee questions; several advocacy groups then offered testimony for and against the package.

Representative Schuette, introducing House Bills 4055 through 4059, told the committee the bills “aim to address an important problem that is facing our state: it’s too expensive to raise a family.” The sponsors described three core elements: a state child tax credit, a tax-preferred childcare savings program, and sales/use-tax exemptions for infant and toddler items.

House Bill 4055 would create a state income tax child tax credit equal to 50% of the federal child tax credit. "It would be 50% of the federal tax credit," Schuette said, "meaning that a family in Michigan could get as much as, you know, a thousand dollars currently and maybe $500 in future years depending on what happens federally." The bill sponsors said the state credit is intended to put cash back into families’ pockets to help with basics such as groceries and utilities.

House Bills 4056…