HOUSE BILL NO. 6035

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.713) by adding sections 279 and 679.

the people of the state of michigan enact:

Sec. 279. (1) For tax years that begin on and after January 1, 2020, a taxpayer who is a qualified employer may claim a credit against the tax imposed by this part in an amount equal to the following percentage of the purchase price paid by the taxpayer during the tax year to purchase personal protective equipment and supplies for its employees in this state:

(a) For a qualified employer that increased the number of employees that it had in this state on February 1, 2020 by at least 10% during the tax year and the average wage of its employees exceeds the regional average wage for that same year, 100%.

(b) For a qualified employer that retained the same number of employees that it had in this state on February 1, 2020 during the tax year, 50%.

(2) The department may require reasonable proof from the taxpayer in support of the purchase prices claimed under this section and the number of employees retained or hired during the tax year.

(3) If the credit allowed by this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability of the taxpayer for the tax year shall be refunded.

(4) As used in this section:

(a) "COVID-19 safety protocol plan" means a COVID-19 exposure prevention, preparedness, and response plan that meets all of the following requirements:

(i) Complies with any applicable law, including any applicable executive orders regarding safeguards to protect Michigan's workers from COVID-19.

(ii) Is consistent with best practices for infection prevention and industrial hygiene.

(iii) Promotes remote work to the fullest extent possible, including, but not limited to, increasing the number of telework-eligible employees.

(iv) Implements enhanced cleaning, screening, testing, and contact tracing procedures and any additional infection-control measures that are reasonable in light of the work performed at the worksite and the rate of infection in the surrounding community.

(b) "Disinfecting products" means products designed to disinfect or sanitize an individual, workplace, or protective equipment. Disinfecting products include, but are not limited to, antibacterial soap, disinfecting spray, disinfecting wipes, and hand sanitizer.

(c) "Personal protective equipment and supplies" means protective equipment and disinfecting products.

(d) "Protective equipment" means items for human wear and designed as protection of the wearer against injury or disease or as protection against damage or injury of other persons or property but not suitable for general use. Protective equipment includes, but is not limited to, breathing masks, face shields, respirators, protective gloves, and safety glasses and goggles.

(e) "Qualified employer" means an employer located in this state that adopts a COVID-19 safety protocol plan and submits that plan to the department.

Sec. 679. (1) For tax years that begin on and after January 1, 2020, a taxpayer that is a qualified employer may claim a credit against the tax imposed by this part in an amount equal to the following percentage of the purchase price paid by the taxpayer during the tax year to provide personal protective equipment and supplies for its employees in this state:

(a) For a qualified employer that increased the number of employees that it had in this state on February 1, 2020 by at least 10% during the tax year and the average wage of its employees exceeds the regional average wage for that same year, 100%.

(b) For a qualified employer that retained the same number of employees that it had in this state on February 1, 2020 during the tax year, 50%.

(2) The department may require reasonable proof from the taxpayer in support of the purchase prices claimed under this section and the number of employees retained or hired during the tax year.

(3) If the credit allowed by this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability of the taxpayer for the tax year shall be refunded.

(4) As used in this section:

(a) "COVID-19 safety protocol plan" means a COVID-19 exposure prevention, preparedness, and response plan that meets all of the following requirements:

(i) Complies with any applicable law, including any applicable executive orders regarding safeguards to protect Michigan's workers from COVID-19.

(ii) Is consistent with best practices for infection prevention and industrial hygiene.

(iii) Promotes remote work to the fullest extent possible, including, but not limited to, increasing the number of telework-eligible employees.

(iv) Implements enhanced cleaning, screening, testing, and contact tracing procedures and any additional infection-control measures that are reasonable in light of the work performed at the worksite and the rate of infection in the surrounding community.

(b) "Disinfecting products" means products designed to disinfect or sanitize an individual, workplace, or protective equipment. Disinfecting products include, but are not limited to, antibacterial soap, disinfecting spray, disinfecting wipes, and hand sanitizer.

(c) "Personal protective equipment and supplies" means protective equipment and disinfecting products.

(d) "Protective equipment" means items for human wear and designed as protection of the wearer against injury or disease or as protection against damage or injury of other persons or property but not suitable for general use. Protective equipment includes, but is not limited to, breathing masks, face shields, respirators, protective gloves, and safety glasses and goggles.

(e) "Qualified employer" means an employer located in this state that adopts a COVID-19 safety protocol plan and submits that plan to the department.