The Michigan Department of Treasury is reminding businesses that time is running out to participate in a $409 million business grant relief program designed to provide certain Michigan businesses financial support.

Under the Growing MI Business Grant Program, eligible businesses in operation before October 1, 2019, may receive a grant up to $5 million due to financial hardship. Eligible businesses that began operating between October 1, 2019, and May 31, 2020, may receive a grant equal to 25% of certain specified costs.

Individuals can apply for business resources online at www.michigan.gov/abr.

Each business must submit a completed online application to the Michigan Department of Treasury no later than 11:59 p.m. EST Thursday, March 31. Grant awardees will be notified in early summer and grant awards will be distributed by July 1, 2022.

Growing MI Business grants may be prorated depending upon the number of businesses that apply to ensure that all eligible businesses can receive funding. Grants will not be distributed based on a first come, first serve basis.

Under state law, there are nine types of businesses eligible a grant:

• Entertainment venues
• Recreational facilities and public places of amusement
• Barbers and cosmetologists
• Exercise facilities
• Food service establishments
• Nursery dealers and growers
• Athletic trainers
• Body art facilities
• Hotels and bed & breakfast establishments

Additional information about the Growing MI Business Grant Program – including frequently asked questions, fact sheets and previously recorded webinars – can be found on www.michigan.gov/abr. Individuals with questions about this grant program should email Treas-abr@michigan.gov.

The State of Michigan Investment Board on March 9 voted unanimously to divest the State of Michigan Retirement Systems (SMRS) pension plans from companies based in Russia and Belarus.

The state board's action comes after Gov. Gretchen Whitmer issued a letter on March 1 calling for a special meeting to divest from any institutions and companies based in Russia. The State of Michigan Investment Board will begin divesting from Russian and Belarusian companies as soon as practical when market conditions allow.

"Today, the board decided this action is more than the right thing to do," said State Treasurer Rachael Eubanks, who is the chairperson of the State of Michigan Investment Board. "We have directed the investment team to begin the divestment process. Any state assets that could be used to support and prolong Russian's war against Ukraine runs contrary to the purpose of providing benefits to individuals who dedicate their professional lives to public service."

The SMRS serves to provide benefits to active and retired civil servants and other individuals who have worked for the benefit of the state of Michigan.

With the SMRS portfolio exceeding $98 billion, approximately 0.06% of state pension assets are associated with Russian institutions and organizations. There are no Belarusian holdings in the state portfolio.

The Russian holdings are managed by external investment managers and primarily invested in low-cost international stock index funds. The index funds are the direct owners of the Russian securities.

The SRMS will send formal letters to all relevant investment managers, requesting expeditious divestment from any Russian investments.

"The world watched in horror as President Vladimir Putin launched an illegal and destructive war against the people of Ukraine," said Governor Gretchen Whitmer. "The actions taken by State Treasurer Eubanks and the State of Michigan Investment Board today are a signal to the world that Michigan stands firmly in solidarity with Ukraine. Thank you to Treasurer Eubanks for taking this important step today."

The Michigan Department of Treasury is reminding taxpayers that state individual income tax returns are due in less than a month.

State individual income tax returns must be filed electronically or postmarked through the U.S. Postal Service by 11:59 p.m. on Monday, April 18.

“If you haven’t started thinking about filing your individual income tax return, now is the time to do so,” said Deputy State Treasurer Glenn White, who oversees Treasury’s Revenue Services programs. “There is still plenty of time left to file your tax return. Consider e-filing to ensure an accurate return and timely refund.”

Choosing electronic filing and direct deposit is convenient, safe and secure. Last year, more than 4.8 million Michigan taxpayers e-filed, which is 88% of state income tax filers.

For more information about e-filing, go to www.mifastfile.org.

Printed tax forms are available at public libraries, post offices in northern Michigan and the Upper Peninsula, Department of Health and Human Services county offices, and Treasury field offices.

For the convenience of taxpayers, both federal and state tax returns are due on Monday, April 18.

Michigan taxpayers who have questions about their individual income tax returns or refunds can use the Treasury eServices platform to find answers.

The state Treasury Department portal enables taxpayers to ask state individual income tax-related questions when convenient and avoids waiting for a customer service representative to answer your call. Taxpayers typically get answers to questions through Treasury eServices within 24 to 48 hours.

Real-time tax refund status information is available 24 hours a day, seven days a week.

The Treasury eServices platform also enables taxpayers to change addresses, view estimated tax payments, calculate penalty and interest, and view and respond to letters.

To learn more about Michigan’s individual income tax or to download forms, go to www.michigan.gov/incometax or follow the state Treasury Department on Twitter at @MITreasury.

Governor Gretchen Whitmer and the Michigan Department of Treasury are encouraging eligible families and individuals to claim both the federal and state Earned Income Tax Credit (EITC) when filing their 2021 income taxes. Those who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund. 

"We can all agree that after a tough few years, extra money in your pocket will make a difference. The federal and state Earned Income Tax Credits make a difference for Michigan's families, whether it's helping them put food on the table or buy new school supplies for their kids. That's why my budget proposal would triple the Michigan EITC," said Governor Gretchen Whitmer. "But too many eligible families don't file for the EITC. So today, I am encouraging every eligible Michigan family to take advantage of this tax credit this year. It'll get more money back to Michiganders at a time they can really use it." 

Governor Whitmer's FY23 budget recommendation takes advantage of the opportunity Michigan has to cut taxes for hardworking families by tripling the Michigan EITC to pull 22,000 Michiganders out of working poverty and deliver 730,000 households an average combined tax refund of $3,000 beginning with tax year 2022.  

"I strongly encourage all eligible Michiganders to claim the Earned Income Tax Credit," said State Treasurer Rachael Eubanks. "It's been a challenging year for many residents and the extra income this tax credit provides can be really helpful to working families. Please take the opportunity to claim the EITC on both your federal and state individual income tax returns -- every refund helps Michigan families care for their children and meet living expenses." 

To qualify for the EITC, individuals must: 

• Have worked and earned income under $57,414 
• Have investment income below $10,000 in the tax year 2021 
• Have a valid Social Security number by the due date of your 2021 return (including extensions) 
• Be a U.S. citizen or a resident alien all year 

• Not file Form 2555 (related to foreign earned income) 

Michigan EITC calculation instructions are provided on the MI-1040. Tax preparation software calculates the state EITC if the federal EITC is granted. If a federal EITC is granted, the state of Michigan will provide a 6% supplemental EITC when the taxpayer files a state individual income tax return. 

For the 2020 tax year, approximately 713,000 Michigan claimants received the federal EITC, totaling almost $1.8 billion with an average credit amount of $2,467. 

The state Treasury Department estimates there are thousands of eligible Michiganders who are eligible for both the federal and state EITCs and do not claim them each year. 

To learn more about the EITC, go to www.irs.gov/eitc. For more information about services provided by the state Treasury Department, go to www.michigan.gov/treasury 

Taxpayers claiming an individual income tax credit associated with the new flow-through entity (FTE) tax must file that claim by paper for the 2021 filing season.

On Dec. 21, 2021, state law created the FTE tax and provided for retroactivity to tax years on and after Jan. 1, 2021. Due to the short timeframe provided to implement this tax, electronic filing is not available for submitting FTE tax credits on the individual income tax return.

Members claiming an FTE tax credit must paper file their 2021 MI-1040, MI-1041, or Form 807 Composite return. Credit claimants must include a copy of the federal Schedule K-1 with the notes or other supporting documentation received from the FTE to support the credit.

Additional information about the FTE tax is available on the Michigan Department of Treasury’s taxes website.

The 2022 tax filing season is in full swing, and while it may not be the favorite time of year for most Michiganders, the refund that a majority of taxpayers will receive makes the tedious process of preparing state and federal tax returns worth the effort.  

According to IRS data, federal tax refunds averaged $2,873 in 2021. Of course, that raises the question of what to do with the money.

Michigan Education Savings Program (MESP) Administrator Diane Brewer is encouraging parents, grandparents and guardians to put that money to work in an MESP account for a child or grandchild.

"Investing your tax refund in an MESP account is a smart and easy way to help plan and save for a child's postsecondary education," Brewer said. "Even a small 'windfall' like a tax refund can help accelerate the value of a current account or help kickstart a new one." 

MESP is a state-sponsored, tax-advantaged 529 college savings plan created in 2000 to help people save for the cost of higher education.

It can be used at any eligible college, university or trade school in the nation and some abroad for a variety of qualified higher education expenses, including tuition, fees, certain room and board costs, books, supplies and equipment required for enrollment.

Managed by TIAA-CREF Tuition Financing Inc. on behalf of the Michigan Department of Treasury, MESP has more than 294,000 accounts with total assets exceeding $7.3 billion.

Ranked among the nation's best state-administered 529 college savings programs over the past decade, MESP has earned silver and gold ratings from Morningstar each year since 2012.

The investment research firm routinely gives MESP high marks for its well-researched asset allocation approach, robust process for selecting underlying investments, appropriate set of options to meet investor needs, strong oversight from the state and investment manager and low fees.

MESP offers a variety of professionally managed and flexible investment options ranging from conservative to aggressive.

In January, MESP expanded its lineup with the addition of four new funds from Vanguard: Growth Index Fund (domestic stock fund), Value Index Fund (domestic stock fund), Extended Market Index Fund (domestic stock fund) and Emerging Markets Index Fund (international stock fund).

The program now offers 22 investment options to fit a family's life situation, risk tolerance and college savings goals.

With the cost of college increasing at a faster rate than inflation, Brewer says that MESP provides families the ability not only to invest and grow their savings over the long term, but also in a more tax-favorable manner.  

MESP is one of three Michigan Section 529 plans, named after the section of the Internal Revenue Code that allowed for their creation. Each plan offers Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on earnings if account proceeds are used to pay for qualified higher education expenses.

"Whether a child is an infant or a teen, there is no better time to start planning for the future and saving for higher education than right now," Brewer said. "And that refunded money from Uncle Sam can really help."

More information about MESP is available at MISaves.com or 877-861-6377.