Nina Manzi, Michigan House of Representatives, Updated January 2016. The federal EITC and Minnesota working family credit equal a percentage of the earnings of low-income individuals. The credits are refundable; if the credit exceeds a filer’s tax liability, the rest is paid as a refund. Since these credits increase their recipients’ earnings, they act as wage supplements and are thought to provide a work incentive.

http://www.house.leg.state.mn.us/hrd/pubs/ss/sseitcwfc.pdf