MI SB1117

Allows qualified taxpayers to claim a tax credit equal to 20% of compensation paid to qualified employees or $3,000 per employee, whichever is less, for tax years beginning January 1, 2013.

Unused tax credits may be carried forward as offsets to tax liability in subsequent tax years for up to 5 years or until fully utilized.

Requires employers to recapture credit amounts if a qualified employee is terminated within 1 year of hire, with the department able to reduce, terminate, or add back a percentage of the claimed credit.

Limits the credit to employers with fewer than 100 full-time employees and defines qualified employees as individuals who were unemployed for at least 60 days before hire and are not relatives or dependents of majority owners.

Defines compensation broadly to include wages, salaries, bonuses, retirement contributions, and health insurance payments, but excludes discounts, independent contractor payments, and employer payroll taxes.