MI HB5772

Allows 501(c) tax-exempt organizations to claim a work opportunity tax credit equal to 50% of the federal Work Opportunity Tax Credit (WOTC) under IRC Section 51 against Michigan withholding tax obligations for tax years beginning January 1, 2024 and after.

Credit applies only to qualified wages paid to qualified employees certified by the Michigan Unemployment Insurance Agency as members of a targeted group and employed in Michigan.

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

Credit is claimed on the annual withholding tax return required under section 711; excess credit over withholding tax liability for the tax year is not refundable.

Enactment is contingent upon passage of Senate Bill No. ____ or House Bill No. 5771 (a tie-bar provision).