MI · Tax Credit

Michigan Workforce Training Tax Credits: What Employers Can Claim

Michigan has no state tax credit for hiring or training workers that official pages confirm. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025, unless Congress renews it, per the IRS page updated July 20, 2026. The closest state tool is the New Jobs Training Program, where withholding tax on new jobs pays a community college to train your workers. That is not a credit to you.

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State pre-filled: MI
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HOW IT WORKS

Four steps, in this order.

1
Check whether Congress has renewed WOTC on the IRS page
2
If you are creating new jobs, ask a community college about New Jobs Training
3
Sign the agreement before hiring and training
4
Report and remit withholding as the agreement requires

2 VERIFIED PROGRAMS

Where the Michigan money comes from.

Run by Internal Revenue Service (WOTC) and Michigan community colleges (New Jobs Training). Every figure is from an official page, linked on each card.

Work Opportunity Tax Credit (federal, WOTC)

Lapsed for 2026 hires

LAPSED, AWAITING CONGRESS

WHAT YOU GET

Credit for wages paid to certified target-group hires. Not available for people starting after December 31, 2025.

HOW MUCH

Not available for new 2026 starts unless Congress acts.

WHO RECEIVES THE MONEY

The employer, as a federal income tax credit.

WHO QUALIFIES

Hire certified by the designated local agency as a target group member
Starts on or before December 31, 2025

Before you start: Yes. Screening and certification before claiming.

Michigan New Jobs Training Program (withholding diversion)

Withholding on new jobs pays for training

OPEN THROUGH 2033, VIA COLLEGES

WHAT YOU GET

Training funded from withholding on the jobs created, so training costs are offset by the new jobs' own payroll.

HOW MUCH

Set in each agreement. 15% administrative fee to the college; employer covers any quarterly shortfall.

WHO RECEIVES THE MONEY

The community college. It is paid from the income tax withholding on the new jobs, and trains your workers. Not a credit to the employer.

WHO QUALIFIES

Net new full-time jobs paying at least the county ALICE rate
Lien on employer property as security

Before you start: Yes. Agreement with the college first.

AVOID THESE

What gets Michigan Tax Credit claims denied.

Claiming WOTC for a hire who starts after December 31, 2025.
SOURCE: IRS.GOV
Treating New Jobs Training as a cash credit. The college receives the money.
SOURCE: LEGISLATURE.MI.GOV
Counting a job that is not a net new full-time job at or above the county ALICE rate.
SOURCE: LEGISLATURE.MI.GOV

STRAIGHT ANSWERS

Michigan Tax Credit questions.

Can I claim WOTC for a 2026 hire in Michigan?

Not unless Congress renews it. The IRS says it covers wages for people who begin work on or before December 31, 2025.

SOURCE: IRS.GOV

Does Michigan have its own hiring tax credit?

None was found on official Michigan pages checked in September 2026.

SOURCE: IRS.GOV

Who gets the money under New Jobs Training?

The community college, from withholding on the new jobs. You pay any quarterly shortfall.

SOURCE: LEGISLATURE.MI.GOV

How long can colleges sign new agreements?

Through December 31, 2033, under Public Act 186 of 2023.

SOURCE: LEGISLATURE.MI.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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