Michigan proposes tax breaks for charities hiring struggling workers

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 5118'25

Introduced· 2025-10-23

Who's it for

Who's it for: Workers

What it means for you

8/10Helps you

Good for everyday people ·

Plain‑English summary, cross‑checked against the official bill text.

This bill gives non-profit groups a tax break if they hire workers who usually have a hard time finding jobs, like veterans or people who were in prison.

Our take

What we think, in plain words.

Non-profits do a lot of good work, but they often run on tight budgets. This bill helps them out by offering a tax credit when they hire people who face barriers to employment. These workers include veterans, people on food assistance, and those who were previously in prison. By lowering the taxes these non-profits have to send to the state, the bill makes it easier for them to give people a second chance. It is a win for local charities and a win for workers who need a steady job.

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The facts

What the bill actually says, no spin.

Allows non-profit groups to claim a new tax credit starting in 2026.
The credit applies when they hire workers from specific targeted groups.
Targeted groups include veterans and people who have been unemployed for a long time.
The tax break equals half of the federal work opportunity credit.
The credit is not refundable if it is larger than the taxes the non-profit owes.
The bill only passes if another related bill also becomes law.