| 1 | 1 | | HOUSE BILL NO. 5772 A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.847) by adding section 714. the people of the state of michigan enact: Sec. 714. (1) For tax years beginning on and after January 1, 2024, an employer that is an organization exempt under section 501(c) of the internal revenue code may claim a work opportunity tax credit against the taxes required to be withheld and remitted to this state under this chapter for qualified wages paid to qualified employees in an amount equal to 50% of the amount of the credit the employer is allowed to claim as a credit under section 51 of the internal revenue code for a tax year on a return or report filed under this chapter for the same tax year. In calculating the amount of the credit allowed under this section, the employer shall exclude from the amount of the credit allowed under section 51 of the internal revenue code for that same tax year, both of the following: (a) Any amount attributable to employees who were not qualified employees. (b) Any amount of unused credits that is carried back or forward from another tax year in accordance with section 39 of the internal revenue code. (2) An employer claiming a credit under this section against the withholdings tax payments made under this chapter shall, in a form and content as prescribed by the department, claim the credit on the annual return or report required under section 711 for that same tax year. (3) If the credit allowed under this section for the tax year exceeds the employer's withholdings tax liability under this chapter, that portion that exceeds the withholdings tax liability for the tax year must not be refunded. (4) As used in this section: (a) "Qualified employee" means an employee who has been certified by the Michigan unemployment insurance agency as a member of a targeted group and is employed in this state. (b) "Qualified wages" means the wages paid or incurred by the employer during the tax year to qualified employees. Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5771 (request no. 04853'23) of the 102nd Legislature is enacted into law. |
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| 27 | 27 | | HOUSE BILL NO. 5772 |
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| 31 | 31 | | A bill to amend 1967 PA 281, entitled |
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| 33 | 33 | | "Income tax act of 1967," |
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| 35 | 35 | | (MCL 206.1 to 206.847) by adding section 714. |
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| 36 | 36 | | |
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| 37 | 37 | | the people of the state of michigan enact: |
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| 39 | 39 | | Sec. 714. (1) For tax years beginning on and after January 1, 2024, an employer that is an organization exempt under section 501(c) of the internal revenue code may claim a work opportunity tax credit against the taxes required to be withheld and remitted to this state under this chapter for qualified wages paid to qualified employees in an amount equal to 50% of the amount of the credit the employer is allowed to claim as a credit under section 51 of the internal revenue code for a tax year on a return or report filed under this chapter for the same tax year. In calculating the amount of the credit allowed under this section, the employer shall exclude from the amount of the credit allowed under section 51 of the internal revenue code for that same tax year, both of the following: |
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| 40 | 40 | | |
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| 41 | 41 | | (a) Any amount attributable to employees who were not qualified employees. |
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| 43 | 43 | | (b) Any amount of unused credits that is carried back or forward from another tax year in accordance with section 39 of the internal revenue code. |
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| 44 | 44 | | |
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| 45 | 45 | | (2) An employer claiming a credit under this section against the withholdings tax payments made under this chapter shall, in a form and content as prescribed by the department, claim the credit on the annual return or report required under section 711 for that same tax year. |
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| 47 | 47 | | (3) If the credit allowed under this section for the tax year exceeds the employer's withholdings tax liability under this chapter, that portion that exceeds the withholdings tax liability for the tax year must not be refunded. |
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| 49 | 49 | | (4) As used in this section: |
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| 51 | 51 | | (a) "Qualified employee" means an employee who has been certified by the Michigan unemployment insurance agency as a member of a targeted group and is employed in this state. |
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| 52 | 52 | | |
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| 53 | 53 | | (b) "Qualified wages" means the wages paid or incurred by the employer during the tax year to qualified employees. |
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| 54 | 54 | | |
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| 55 | 55 | | Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5771 (request no. 04853'23) of the 102nd Legislature is enacted into law. |
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