Bill Text: MI SB0607 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Individual income tax; credit; incentive for employers to hire certain unemployed military members; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) & adds secs. 279 & 679.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2019-10-24 - Referred To Committee On Finance [SB0607 Detail]
Download: Michigan-2019-SB0607-Introduced.html
SENATE BILL NO. 607
October 24, 2019, Introduced by Senators
HOLLIER, POLEHANKI, WOJNO and MACDONALD and referred to the Committee on
Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 279 and 679.
the people of the state of michigan enact:
Sec. 279. (1) For tax years that begin on and after January 1, 2020, a taxpayer that is an employer that employs an unemployed member of the Michigan National Guard or a member of the reserve forces of the United States for a continuous period of 1 year, except as otherwise provided in this section, may claim a credit against the tax imposed under this part for each member of the Michigan National Guard or member of the reserve forces of the United States employed by the taxpayer during the tax year equal to 25% of the employee's wage base. For the purpose of this section, the employee's wage base is the first $5,000.00 in wages or compensation actually paid to the employee by the employer.
(2) A taxpayer may not claim a tax credit under this section for any individual who is employed for less than a continuous period of 1 year, unless 1 of the following applies:
(a) The individual voluntarily leaves employment with the employer.
(b) The individual becomes totally disabled and unable to continue his or her employment.
(c) The individual is terminated for good cause shown.
(3) In the event that the individual is employed for less than a continuous 1-year period due to circumstances enumerated in subsection (2), the taxpayer may claim a partial tax credit against the tax imposed by this part in a proportional amount corresponding to the ratio of the time period during which the individual was actually employed to the 1-year period required for a full tax credit multiplied by the amount of the full tax credit which would have accrued to the employer if the individual's employment had continued for a full year.
(4) A taxpayer shall not claim a credit under this section for either of the following:
(a) An individual who is employed and displaces a person already employed.
(b) An individual for whom the employer is receiving job training payments from either the federal or state government.
(5) Nothing in this section prohibits a taxpayer from receiving other tax credits or incentives under other state or federal similar targeted jobs programs if the taxpayer is otherwise qualified to receive both.
(6) If the amount of the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall be refunded.
(7) As used in this section, "unemployed" means an individual who is without a job and who wants and is available for work. The determination of whether an individual is without a job shall be made in accordance with the criteria used by the Bureau of Labor Statistics of the United States Department of Labor in defining individuals as unemployed
Sec. 679. (1) For tax years that begin on and after January 1, 2020, a taxpayer that is an employer that employs an unemployed member of the Michigan National Guard or a member of the reserve forces of the United States for a continuous period of 1 year, except as otherwise provided in this section, may claim a credit against the tax imposed under this part for each member of the Michigan National Guard or member of the reserve forces of the United States employed by the taxpayer during the tax year equal to 25% of the employee's wage base. For the purpose of this section, the employee's wage base is the first $5,000.00 in wages or compensation actually paid to the employee by the employer.
(2) A taxpayer may not claim a tax credit under this section for any individual who is employed for less than a continuous period of 1 year, unless 1 of the following applies:
(a) The individual voluntarily leaves employment with the employer.
(b) The individual becomes totally disabled and unable to continue his or her employment.
(c) The individual is terminated for good cause shown.
(3) In the event that the individual is employed for less than a continuous 1-year period due to circumstances enumerated in subsection (2), the taxpayer may claim a partial tax credit against the tax imposed by this part in a proportional amount corresponding to the ratio of the time period during which the individual was actually employed to the 1-year period required for a full tax credit multiplied by the amount of the full tax credit which would have accrued to the employer if the individual's employment had continued for a full year.
(4) A taxpayer shall not claim a credit under this section for either of the following:
(a) An individual who is employed and displaces a person already employed.
(b) An individual for whom the employer is receiving job training payments from either the federal or state government.
(5) Nothing in this section prohibits a taxpayer from receiving other tax credits or incentives under other state or federal similar targeted jobs programs if the taxpayer is otherwise qualified to receive both.
(6) If the amount of the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall be refunded.
(7) As used in this section, "unemployed" means an individual who is without a job and who wants and is available for work. The determination of whether an individual is without a job shall be made in accordance with the criteria used by the Bureau of Labor Statistics of the United States Department of Labor in defining individuals as unemployed.
