Michigan Senate Bill SB0425

Michigan 2025-2026 Regular Session

• Introduced: 6/17/25
• Refer: 6/17/25

Caption

Higher education: community colleges; remission of new jobs credit from withholding to community college districts; clarify application to professional employer organizations. Amends secs. 161 & 163 of 1966 PA 331 (MCL 389.161 & 389.163). TIE BAR WITH: SB 0426'25

Impact

The bill's provisions will have a direct impact on the operations of community college districts and their ability to collaborate with local businesses for workforce development. By permitting the use of withholding tax credits to support these programs, the bill encourages employers to create new, full-time jobs. The community colleges can thus enhance their training facilities and services, which can potentially lead to an increase in local employment rates and a more skilled workforce. However, this also places a responsibility on community colleges to assure that the funds are utilized effectively in supporting job creation and workforce readiness.

Summary

Senate Bill 425 seeks to amend the Community College Act of 1966 to facilitate the training and creation of new jobs through financial incentives in the form of a new jobs credit from withholding. This amendment focuses specifically on the agreements between community colleges and employers, allowing community colleges to establish new job training programs financed in part by these employer agreements that stipulate terms regarding job creation and employee training. The bill aims to enhance the workforce skills of job seekers and ensure that employers have access to quality training resources necessary for maintaining a competent labor force.

Contention

Notably, the bill may encounter some points of contention related to the utilization of public funds and accountability measures for the new jobs credits. Employers must ensure that their new job positions are genuine net employment increases rather than replacements of existing jobs. Critics might also raise concerns regarding potential abuses of the system, particularly regarding what constitutes a 'new job' and the metrics used to evaluate the success of job training programs. Furthermore, the requirement for the community colleges to track and certify various metrics to the department of treasury could add an administrative burden that some stakeholders may view as excessive.