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: SB 0995'26

Summary

Starting in 2026, Michigan employers that are exempt from federal tax under section 501(c) can claim a credit against the state income‑tax withholding they must remit, equal to 50 % of the federal work opportunity tax credit they would otherwise receive for hiring qualified employees. The credit applies only to wages paid to Michigan residents certified as members of a targeted group, and any credit that exceeds the employer’s withholding liability is not refunded. Employers claim the credit on their annual withholding return.

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