HB 5200 Summary

• Creates apprenticeship tax credit for qualified taxpayers with 20 or fewer full-time employees beginning January 1, 2020.

• Credit equals 50% of salary/wages and fringe benefits paid to apprentices, plus 100% of classroom instruction costs, or $2,000 per apprentice per year, whichever is less.

• Excess credits that exceed tax liability are refunded to the taxpayer.

• Apprentices must be Michigan residents age 16 or older trained through programs registered with the U.S. Department of Labor, covered by an apprenticeship agreement, and filed with a local workforce development board.

• Department of Labor and Economic Opportunity must report annually to legislative tax and appropriations committees on program participation, completion rates, post-apprenticeship employment, and fiscal impact by March 1st each year.