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.

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.