SB 994

SENATE BILL NO. 994
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding section 714.
the people of the state of michigan enact:
Sec. 714. (1) For tax years beginning on and
after January 1, 2026, an employer that is an organization exempt from federal
taxation under section 501(c) of the internal revenue code may claim a work
opportunity tax credit against the taxes required to be withheld and remitted
to this state under this chapter for qualified wages paid to qualified
employees in an amount equal to 50% of the amount of the credit the employer is
allowed to claim as a credit under section 51 of the internal revenue code for
a tax year on a return or report filed under this chapter for the same tax year
or would have been allowed to claim if the credit under section 51 of the
internal revenue code was still in effect. In calculating the amount of the
credit allowed under this section, the employer shall exclude from the amount
of the credit allowed or that would have been allowed under section 51 of the
internal revenue code for that same tax year, both of the following:
(a) Any
amount attributable to employees who were not qualified employees.
(b) Any amount
of unused credits that is carried back or forward from another tax year in
accordance with section 39 of the internal revenue code.
(2) An
employer claiming a credit under this section against the withholdings tax
payments made under this chapter shall, in a form and content as prescribed by
the department, claim the credit on the annual return or report required under
section 711 for that same tax year.
(3) If the
credit allowed under this section for the tax year exceeds the employer's
withholdings tax liability under this chapter, that portion that exceeds the withholdings
tax liability for the tax year must not be refunded.
(4) As used
in this section:
(a)
"Member of a targeted group" means an individual identified and
defined under section 51(d) of the internal revenue code.
(b)
"Qualified employee" means an employee who is a resident of this
state and has been certified by the Michigan unemployment insurance agency as a
member of a targeted group.
(c)
"Qualified wages" means that term as defined under section 51 of the
internal revenue code.
Enacting section 1.
This amendatory act does not take effect unless Senate Bill No. 995 of the
103rd Legislature is enacted into law.