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
Key claim: Michigan SB0994 would amend the Income Tax Act to create a work opportunity withholdings tax credit for certain tax-exempt organizations, tie-barred with SB0995.
Abstract
(SB0994 · 103rd Legislature) 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 Sponsor: Sen. Sue Shink (D) + 2 co-sponsors In committee: S Economic And Community Development Latest action (2026-05-20): Referred To Committee On Economic And Community Development
Why this matters
The proposal would let tax-exempt employers — which typically cannot use income-based tax credits — capture the value of hiring workers from federal Work Opportunity Tax Credit target groups (e.g., veterans, long-term unemployed) by offsetting their payroll withholding remittances. For nonprofits, this expands the economic incentive to hire disadvantaged workers; for the state, it represents forgone withholding revenue tied to workforce development goals.