MI HB5771

Allows employers to claim a work opportunity tax credit equal to 50% of the federal work opportunity credit under Internal Revenue Code section 51 for tax years beginning January 1, 2024 and later.

Defines "qualified employees" as workers certified by the Michigan unemployment insurance agency as members of a targeted group and employed in Michigan, and "qualified wages" as wages paid to these employees.

Excludes from the credit calculation any amounts attributable to non-qualified employees and any unused federal credits carried back or forward from other tax years.

Credits cannot be refunded if they exceed the taxpayer's tax liability for the year; allows flow-through entity members to claim credits based on their distributive share of business income.

Effective only if Senate Bill No. ____ or House Bill No. 5772 is enacted into law.