Bill Text: MI HB5936 | 2015-2016 | 98th Legislature | Introduced

---

Bill Title: Corporate income tax; credits; apprenticeship tax credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 675.

Spectrum: Strong Partisan Bill (Democrat 13-1)

Status: (Introduced - Dead) 2016-10-19 - Bill Electronically Reproduced 09/22/2016 [HB5936 Detail]

Download: Michigan-2015-HB5936-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5936

 

 

September 22, 2016, Introduced by Reps. Driskell, Townsend, Love, Hovey-Wright, Chang, LaVoy, Liberati, Lucido, Hoadley, Lane, LaGrand, Chirkun, Darany and Pagan and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.713) by adding section 675.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 675. (1) For tax years beginning on and after January 1,

 

2017, a taxpayer may claim a credit against the tax imposed by this

 

part equal to the sum of 50% of the qualified expenses defined in

 

subsection (5)(d)(i) and (ii) and 100% of the qualified expenses

 

defined in subsection (5)(d)(iii) paid by the taxpayer in the tax

 

year in each of the following circumstances:

 

     (a) Except for apprentices trained under subdivision (b), an

 

amount not to exceed $2,000.00 for each apprentice trained by the

 

taxpayer in the tax year.

 

     (b) For companies that have a classification under the North

 

American Industry Classification System (NAICS) of 333511, 333512,

333513, 333514, or 333515, an amount not to exceed $4,000.00 for

 

each apprentice trained by the taxpayer in the tax year.

 

     (2) If the credit allowed under this section exceeds the tax

 

liability of the taxpayer under this act 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

 

the annual return required under section 685, or for a taxpayer

 

that is not required to file an annual return, the department shall

 

provide that the credit under this section may be claimed on a form

 

prescribed by the department for persons not required to file an

 

annual return.

 

     (4) For each year that this credit is in effect, the

 

department of talent and economic development shall prepare a

 

report containing information including, but not limited to, the

 

number of companies taking advantage of the apprenticeship credit,

 

the number of apprentices participating in the program, the number

 

of apprentices who complete a program the costs of which were the

 

basis of a credit under this section, the number of apprentices

 

that were hired by the taxpayer after the apprenticeship training

 

was completed for which the taxpayer claimed a credit under this

 

section for the costs of training that apprentice, information on

 

the employment status of individuals who have completed an

 

apprenticeship to the extent the information is available, and the

 

fiscal impact of the apprenticeship credit. This report shall then

 

be transmitted to the house tax policy and senate finance

 

committees and to the house and senate appropriations committees.

This report shall be due no later than the first day of March each

 

year.

 

     (5) As used in this section:

 

     (a) "Apprentice" means a person who is a resident of this

 

state, is 16 years of age or older, has not obtained a high school

 

diploma, is enrolled in high school or a high school equivalency

 

test preparation program, as defined in section 4 of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1604, and is trained by

 

a taxpayer through a program that meets all of the following

 

criteria:

 

     (i) The program is registered with the Bureau of

 

Apprenticeship and Training of the United States Department of

 

Labor.

 

     (ii) The program is provided pursuant to an apprenticeship

 

agreement signed by the taxpayer and the apprentice.

 

     (iii) The program is filed with a local workforce development

 

board.

 

     (iv) The minimum term in hours for the program shall be not

 

less than 4,000 hours.

 

     (b) "Enrolled" means currently enrolled or expecting to enroll

 

after a period of less than 3 months during which the program is

 

not in operation and the apprentice is not enrolled.

 

     (c) "Local workforce development board" means a board

 

authorized under the workforce investment act in 29 USC 2832 that

 

has the responsibility to ensure that the workforce needs of the

 

employers in the geographic area governed by the local unit of

 

government are met.

     (d) "Qualified expenses" means all of the following expenses

 

paid by the taxpayer in a tax year that begins after December 31,

 

2016 that were not paid for with funds the taxpayer received or

 

retained, that the taxpayer would not otherwise have received or

 

retained, and that are used for training an apprentice:

 

     (i) Salary and wages paid to an apprentice.

 

     (ii) Fringe benefits and other payroll expenses paid for the

 

benefit of an apprentice.

 

     (iii) Costs of classroom instruction and related expenses

 

identified as costs for which the taxpayer is responsible under an

 

apprenticeship agreement, including, but not limited to, tuition,

 

fees, and books for college-level courses taken while the

 

apprentice is enrolled in high school.