MI HB5144

Allows qualified taxpayers to claim a credit against Michigan income tax equal to 25% of compensation paid to qualified employees or $4,000 per employee per year, whichever is less, for tax years beginning January 1, 2012.

Qualified employees must be either currently unemployed for at least 60 days before hire, or veterans with at least 180 days of active duty or a service-connected disability.

Limits credit eligibility to employers with fewer than 100 full-time employees; employees cannot be hired to replace other employees unless the previous employee left voluntarily or for cause, and cannot be relatives or dependents of majority owners.

Excess credits not used in the current year may be carried forward as an offset to tax liability for up to 5 subsequent tax years.

Requires department to reduce, terminate, or add back a percentage of claimed credits if a qualified employee is terminated within 1 year of hire.