SB0994

Individual income tax: withholding requirements; work opportunity withholdings tax credit for certain tax exempt organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 714. TIE BAR WITH: SB 0995'26

Introduced·5/20/26
Introduced Text

Allows tax-exempt organizations to claim a work opportunity tax credit against state withholding taxes.

This bill amends the Michigan income tax law to allow certain tax-exempt organizations to claim a work opportunity tax credit against the taxes required to be withheld and remitted to the state. The credit is equal to 50% of the amount of the credit the employer is allowed to claim under federal law for qualified wages paid to qualified employees. The credit cannot exceed the employer's withholdings tax liability, and any excess cannot be refunded. The credit is available for tax years beginning on and after January 1, 2026.

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Where it stands

Current
Economic And Community Development Committee
Next
Committee decision

Sponsors

DD
2
1
R
Democratic CaucusRepublican Caucus

History

May 20

Senate

Introduced By Senator Sue Shink

May 20

Senate

Referred To Committee On Economic And Community Development