September 12, 2007, Introduced by Reps. Gaffney, Hune, Rocca and Caswell and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1106 to 208.1601) by adding section 451.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 451. (1) A qualified taxpayer that hires a qualified
graduate for full-time employment, which graduate has completed,
during the tax year for which the credit is initially sought, at
least 12 months of uninterrupted full-time employment in this state
with that taxpayer, may claim a credit against the tax imposed by
this act in an amount equal to 25% of the salary paid to each
qualified graduate for his or her first year of full-time
employment.
(2) The taxpayer shall claim 20% of the amount of the credit
allowed under this section in the first tax year and 20% of the
amount of the credit allowed under this section in each of the
subsequent 4 tax years. 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.
(3) The credit allowed under this section shall be claimed on
a form developed by the department that is a form separate from the
annual return required under this act and shall be filed with the
taxpayer's annual return each year that a credit under this section
is claimed. The department may require the taxpayer to provide
documentation to verify the employment and salary of the qualified
graduate.
(4) As used in this section:
(a) "Eligible educational institution" means that term as
defined in section 529 of the internal revenue code or a college,
university, community college, or junior college described in
section 4, 5, or 6 of article VIII of the state constitution of
1963.
(b) "Full-time employment" means a job performed for 35 hours
or more a week by an individual whose income and social security
taxes are subject to withholding for federal income tax purposes.
(c) "Qualified graduate" means an individual who has received
his or her first bachelor's degree from an eligible educational
institution located in this state and was hired by a qualified
employer within 3 years of receiving that degree.
(d) "Qualified taxpayer" means an employer that hires
individuals for full-time employment and that is located in this
state.