1. Michigan Legislature Expands EITC Credit
The Michigan legislature recently passed a bill expanding Michigan’s Earned Income Tax Credit (EITC). The approved legislation retroactively increased the state’s EITC to 30% of the federal credit, where it is estimated to impact over 700,000 low-income workers.
Why it Matters: Per the Michigan League for Public Policy, upping the state’s EITC credit means that for individuals and their families who are eligible can receive an average of $750 credit per family.
2. CRA Publishes December 2022 Data, Average Price Drops
According to recent monthly datapublished by the Cannabis Regulatory Agency, the average retail flower price of an ounce of cannabis is $90.68, an all-time low and more than a 50% decrease compared to last year’s December 2021 average price of $184.90.
Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices. Contact our cannabis law attorneysif you have any questions.
3. Michigan Legislature Approves $1.1 Billion Supplemental Spending Bill
The Michigan Legislature on Thursday approved a supplemental spending bill totaling $1.1 billion over two years. The spending includes $150 million to deposit into the state’s Strategic Outreach and Attraction Reserve Fund, which the state has used to pay major incentives to manufacturers with plans to build batteries and electric vehicles, and $150 million to develop a tax credit program to reduce housing costs.
Why it Matters: The bill, one of the first acts of the Democrat-controlled legislature, generated some controversy. Republicans complained that there was insufficient time to review the bills, and raised questions about how some of the spending is to be allocated.
4. Upcoming Changes to 529 Plans Following SECURE Act 2.0
President Biden signed the SECURE Act 2.0 into law on December 29, 2022. Under certain conditions, Section 126 of the Act will amend the IRS Code to allow tax and penalty free rollovers from 529 accounts to Roth IRAs.
Why it Matters: There has been a decline in 529 accounts because families are worried about needing to take non-qualified withdrawals of leftover funds within the account, thus incurring a penalty. Section 126 will provide individuals with an option to make better use of leftover funds within a 529 account. Section 126 will become effective with respect to distributions after December 31, 2023. Learn more on the topic.
5. What You Need to Know About Pet Trusts
A pet trust is a legal document that allows you to provide for the care of your beloved pet if you become incapacitated and after you pass away. A pet trust can be created as a standalone document, or as part of a revocable (living) trust or will. In addition, a durable power of attorney can provide instructions to an agent for the care of a pet during your lifetime.
Why it Matters: Estate planning with pets in mind is an increasingly popular way for pet owners to ensure that their furry companions are taken care of, even when the owners can no longer care for themselves. Learn more about how to effectively care for your pets if you become incapacitated or pass away.
Related Practice Groups and Professionals