July 12, 2017, Introduced by Rep. Kosowski and referred to the Committee on Military and Veterans Affairs.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 277 and 677.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 277. (1) For tax years beginning on and after January 1,
2018, a qualified taxpayer may claim a credit against the tax
imposed by this part equal to $1,000.00 for each unemployed veteran
hired during the tax year for a full-time job.
(2) If the credit allowed under this section for the tax year
exceeds the tax liability of the qualified taxpayer for the tax
year, that portion of the credit that exceeds the tax liability
shall not be refunded.
(3) If a qualified taxpayer terminates the employment of an
unemployed veteran for which a credit under this section was
claimed within 1 year after the qualified taxpayer hired that
employee, the department may reduce, terminate, or have a
percentage of the amount of the credit claimed under this section
added back to the tax liability of the taxpayer in the tax year
that the taxpayer terminated that employee.
(4) As used in this section:
(a) "Full-time job" means a job performed by an individual for
35 hours or more each week and whose income and social security
taxes are withheld from the wages earned by that individual for
performing the job.
(b) "Qualified taxpayer" means a taxpayer that is an employer
that employs fewer than 50 full-time employees.
(c) "Unemployed veteran" means an individual who satisfies all
of the following:
(i) Served in the active military, naval, marine, coast guard,
or air service and was discharged or released from his or her
service with an honorable or general discharge.
(ii) Is a resident of this state.
(iii) Is eligible to receive, is currently collecting, or has
exhausted unemployment benefits under a state or federal
unemployment benefit program.
Sec. 677. (1) For tax years beginning on and after January 1,
2018, a qualified taxpayer may claim a credit against the tax
imposed by this part equal to $1,000.00 for each unemployed veteran
hired during the tax year for a full-time job.
(2) If the credit allowed under this section for the tax year
exceeds the tax liability of the qualified taxpayer for the tax
year, that portion of the credit that exceeds the tax liability
shall not be refunded.
(3) If a qualified taxpayer terminates the employment of an
unemployed veteran for which a credit under this section was
claimed within 1 year after the qualified taxpayer hired that
employee, the department may reduce, terminate, or have a
percentage of the amount of the credit claimed under this section
added back to the tax liability of the taxpayer in the tax year
that the taxpayer terminated that employee.
(4) As used in this section:
(a) "Full-time job" means a job performed by an individual for
35 hours or more each week and whose income and social security
taxes are withheld from the wages earned by that individual for
performing the job.
(b) "Qualified taxpayer" means a taxpayer that is an employer
that employs fewer than 50 full-time employees.
(c) "Unemployed veteran" means an individual who satisfies all
of the following:
(i) Served in the active military, naval, marine, coast guard,
or air service and was discharged or released from his or her
service with an honorable or general discharge.
(ii) Is a resident of this state.
(iii) Is eligible to receive, is currently collecting, or has
exhausted unemployment benefits under a state or federal
unemployment benefit program.