This bill amends the Income Tax Act of 1967 by adding two new sections, 279 and 679, which establish a work opportunity tax credit for employers in Michigan. Starting from tax years beginning on or after January 1, 2026, employers who are not exempt from federal taxation under section 501(c) of the Internal Revenue Code can claim a credit equal to 50% of the amount they would have been eligible to claim under section 51 of the Internal Revenue Code for qualified wages paid to qualified employees. The bill specifies that the calculation of this credit must exclude amounts attributable to employees who are not qualified and any unused credits carried back or forward from other tax years.

Additionally, the bill defines key terms such as "member of a targeted group," "qualified employee," and "qualified wages," which are essential for determining eligibility for the tax credit. It also states that if the credit exceeds the taxpayer's liability for the year, the excess amount will not be refunded. The enactment of this bill is contingent upon the passage of House Bill No. 5119.

Statutes affected:
House Introduced Bill: 206.1, 206.847