Michigan HB5118 introduces a work opportunity tax credit for employers in the state.

Michigan HB5118 amends the state's individual income tax law to allow employers to claim a work opportunity tax credit for qualified wages paid to qualified employees. This credit is equal to 50% of the amount of the credit allowed under federal law for a tax year. Qualified employees are those who are residents of Michigan and have been certified by the Michigan unemployment insurance agency as members of a targeted group. The credit is available for tax years beginning on and after January 1, 2026, and cannot exceed the taxpayer's tax liability for the tax year.

Michigan HB5118 introduces a work opportunity tax credit for employers in the state.

Michigan HB5118 amends the state's individual income tax law to allow employers to claim a work opportunity tax credit for qualified wages paid to qualified employees. This credit is equal to 50% of the amount of the credit allowed under federal law for a tax year. Qualified employees are those who are residents of Michigan and have been certified by the Michigan unemployment insurance agency as members of a targeted group. The credit is available for tax years beginning on and after January 1, 2026, and cannot exceed the taxpayer's tax liability for the tax year.