Bill > HB5119

This bill amends Michigan's income tax act to create a new tax credit for tax-exempt organizations (501(c) organizations) beginning in 2026. The bill allows these employers to claim a work opportunity tax credit equal to 50% of the federal work opportunity credit they are eligible for or would have been eligible for, specifically for hiring qualified employees who are members of targeted groups as defined by the Internal Revenue Code. To claim the credit, employers must exclude any credits related to non-qualified employees and unused credits carried from other tax years. The credit can be claimed on the annual tax return, but cannot result in a refund if it exceeds the employer's withholdings tax liability. A "qualified employee" is defined as a Michigan resident who has been certified by the Michigan unemployment insurance agency as a member of a targeted group, such as veterans, ex-felons, or long-term unemployment recipients. The bill is tied to another bill (HB 5118) and will only take effect if that companion bill is also enacted into law.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5119