South Michigan News

State Representative Kathy Schmaltz has joined a bipartisan initiative to introduce House Bills 5118-5119, which aim to establish a state-level Work Opportunity Tax Credit in Michigan. The proposed legislation is designed to encourage employers to hire individuals who encounter barriers to employment, such as veterans, people with disabilities, and those reentering the workforce.

“Many people want to work but face real challenges getting their foot in the door,” Schmaltz said. “By providing an incentive for employers to take a chance on these workers, we can help people find stability and purpose while also addressing our state’s workforce shortage.”

The plan is modeled after an existing federal program that offers tax credits to employers hiring from specific groups. The new state-level credit would add to this federal support, giving Michigan businesses additional resources to recruit and train qualified workers.

A recent study by the U.S. Chamber of Commerce found that Michigan has only 85 available workers for every 100 open jobs. The state's labor force participation rate stands at 61.3%, which is the lowest among Midwestern states. Schmaltz indicated that this legislation could help more residents enter the workforce.

“Work is good for families, good for communities, and good for Michigan’s economy,” Schmaltz said. “This bipartisan plan is a smart way to help more people succeed and help businesses find the workers they desperately need.”

The bills have been sent to the House Economic Competitiveness Committee for review.