HB 5741 Summary

• Creates a tax credit for businesses with 50 employees or less equal to 24% of the federal Paycheck Protection Program (PPP) credit claimed under section 2301 of the CARES Act for the same tax year.

• Reduces the credit amount by any loans or grants received under the Michigan small business relief program created by the Michigan strategic fund on March 19, 2020.

• Allows eligible taxpayers to claim an advance payment of the credit by retaining a portion of taxes required to be withheld from employees under state income tax withholding requirements.

• Specifies that excess credits cannot be refunded if they exceed the taxpayer's tax liability for the tax year.

• Amends sections 703 and 711 to allow employers to retain withheld taxes as advance credit payments and requires employers to report retained amounts separately on tax returns.