MI HB4405

Allows qualified taxpayers to claim a tax credit equal to 25% of compensation paid to qualified employees, up to $4,000 per employee, for tax years beginning January 1, 2016.

Limits eligibility to employers with fewer than 100 full-time employees and applies to employees who are either currently unemployed for 60+ days or veterans with 180+ days active duty or service-connected disabilities.

Excludes employee relatives or dependents of owners with more than 50% ownership stake and prevents credits when employees replace other employees unless the prior employee separated voluntarily or for cause.

Allows unused credit to carry forward as an offset against tax liability for up to 5 subsequent tax years.

Permits the Department of Revenue to reduce, terminate, or reclaim a percentage of the credit if the employer terminates a qualified employee within 1 year of hiring.