Bill > HB5649

This bill, effective for tax years beginning on or after January 1, 2026, introduces new tax credits for employers who invest in apprenticeship and career and technical education programs. A "qualified taxpayer" (an employer) can claim a credit for training apprentices, which includes 50% of wages and fringe benefits, or 100% of certain classroom instruction costs, up to a maximum of $2,000 per apprentice. Additionally, employers can receive a credit for employing eligible students in work-based learning experiences, internships, or cooperative education programs, calculated as 50% of wages and fringe benefits up to $2,000 per student. Small businesses with fewer than 50 employees will receive an additional 10% credit on the combined apprentice and student amounts. If the credit exceeds the taxpayer's liability, the excess will be refunded. The bill defines "apprentice" as a state resident aged 16 or older in a federally registered program, "eligible student" as a state resident aged 19 or younger enrolled in specific educational programs, and "qualified expenses" as costs like wages, benefits, and tuition not covered by other funds. The Department of Labor and Economic Opportunity will also be required to report annually on the impact and participation in these credit programs.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5649