The bill amends the Income Tax Act of 1967 by adding a new section, Sec. 714, which establishes a tax credit for employers who create qualified new jobs in Michigan. This credit, applicable for tax years from January 1, 2026, to January 1, 2036, allows employers to claim 50% of the income tax withheld for each qualified new job created. To qualify, employers must submit a tentative claim to the department by March 15 of the following year, detailing the number of full-time jobs maintained and the new jobs created. The total credits available are capped at $50 million per calendar year, with specific allocations for small, medium, and large employers based on their claims.

Additionally, the bill outlines eligibility criteria for the credit, including a stipulation that employers must maintain at least 95% of their full-time jobs as of September 30, 2025, to qualify. It also specifies that credits cannot be assigned or transferred and must be claimed after all other nonrefundable credits. The bill defines key terms such as "qualified new job," "full-time job," and categorizes employers based on their number of full-time employees. The enactment of this bill is contingent upon the passage of House Bill No. 5292.

Statutes affected:
House Introduced Bill: 206.1, 206.847