MI HB5979

Establishes a tax credit for qualified employers offering paid preadoptive leave to employees, effective for tax years beginning January 1, 2023, equal to 50% of wages paid during preadoptive leave periods.

Limits credit to maximum 12 weeks of preadoptive leave per employee, calculated based on employee's normal hourly wage rate or prorated wage equivalent.

Requires qualifying employees to have been employed at least 1 year with compensation not exceeding 60% of the highly compensated employee threshold under federal tax code.

Requires qualified employers to have a written policy providing at least 2 weeks of paid preadoptive leave for full-time employees (proportionate for part-time) at a rate not less than 50% of normal wages.

Allows unused credits to be carried forward for up to 5 years to offset future tax liability but does not permit refunds of excess credits.