Michigan House Bill HB5415

Michigan 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 1/30/24
• Report Pass: 12/10/24

Caption

Individual income tax: revenue distributions; deposit into the good jobs for Michigan fund; revise to reflect the name change of the fund. Amends secs. 51f & 711 of 1967 PA 281 (MCL 206.51f & 206.711). TIE BAR WITH: HB 5413'24

Impact

The implementation of HB 5415 is expected to enhance funding for business incentives under the H.I.R.E. program. By directing withholding tax revenue, the bill aims to streamline and improve the state's approach to incentivizing job creation. This could lead to overall economic growth and stability within Michigan's job market, as businesses are motivated to establish or expand operations by these financial incentives. The bill's provisions indicate a focused effort on increasing regional employment through substantial financial support.

Summary

House Bill 5415 proposes amendments to the Income Tax Act of 1967, specifically targeting sections regarding revenue distributions derived from withholding tax capture revenues. This bill aims to allocate a certain portion of these revenues to the 'Good Jobs for High-Wage Incentive for Regional Employment in Michigan' (H.I.R.E.) fund. The amendments are designed to facilitate the support of certified new jobs through strategic financial incentives, thus encouraging businesses to create and sustain high-wage job opportunities across the state.

Contention

While the bill appears to have significant support for its economic intentions, notable points of contention may arise regarding the distribution of these incentives and the definitions of 'authorized businesses' and 'certified new jobs.' Critics may argue about the potential for favoritism or unequal access to these incentives, particularly if the criteria for designated businesses are perceived as biased or overly restrictive. As the bill advances, discussions around the practical implications of these definitions will likely emerge.