MI HB5118

Creates a state work opportunity tax credit equal to 50% of the federal credit allowed under Internal Revenue Code section 51 for employers who hire qualified employees from targeted groups

Applies to tax years beginning on and after January 1, 2026, for both individual income tax and corporate income tax filers

Qualified employees must be Michigan residents certified by the Michigan Unemployment Insurance Agency as members of a targeted group (as defined by federal law, including veterans, ex-felons, SNAP recipients, and others)

Credit is non-refundable; any amount exceeding tax liability cannot be refunded and cannot include unused federal credits carried forward or back from other tax years

Takes effect only if HB 5119 is also enacted into law (tie bar provision)