Labor & Employment

HB 5293 creates a tax credit for Michigan employers that create new, qualified jobs. Employers can claim a credit equal to 50% of income tax withheld on new jobs meeting specific criteria (permanent, full-time positions paying at least 150% of the local "prosperity region" median wage, exceeding the employer's September 2025 job count). The credit applies to tax years 2026-2035, with a $50 million annual cap and minimum allocations for small ($10M), medium ($15M), and large ($25M) employers. Employers must submit claims by March 15 each year, and unused credits can be carried forward for up to three years. This directly affects employers in Michigan’s designated economic regions seeking to expand their workforce.

HB 5290 requires public employers to negotiate minimum staffing levels as a mandatory topic in collective bargaining agreements for firefighters and other public employees covered under Michigan's 1969 firefighting safety law (MCL 423.231-423.247). This change applies specifically to units where employees face firefighting hazards, making staffing levels part of required negotiations. Employers may opt out of bargaining on staffing levels only if they face budget shortfalls from state revenue or property tax declines, or if a millage increase would be needed to cover costs. The bill amends sections 11 and 15 of Michigan's 1947 Public Employment Relations Act to update mandatory bargaining requirements.