Individual income tax: withholding requirements; work opportunity withholdings tax credit for certain tax exempt organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 714. TIE BAR WITH: HB 5771'24

This bill allows certain tax-exempt organizations in Michigan to claim a state income tax credit for wages paid to employees from specific targeted groups. To qualify, employers must hire individuals certified by the state unemployment insurance agency as members of these groups and pay them qualified wages during the tax year. The credit is calculated as 50% of the federal work opportunity tax credit the employer would otherwise claim, but it can only be used to reduce taxes withheld from employee paychecks and cannot result in a refund if the credit exceeds those withholdings. Employers must report this credit on their annual state tax return, and the measure takes effect for tax years starting on or after January 1, 2024.