State Rep. Kathy Schmaltz is working on a bipartisan plan that will help connect Michigan workers with good-paying jobs and strengthen the state’s economy.

Schmaltz, R-Jackson, co-sponsored House Bills 5118-5119 to create a state-level Work Opportunity Tax Credit that encourages employers to hire people who face barriers to employment, including 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 legislation mirrors a successful federal program that helps employers offset the cost of recruiting and training qualified workers from targeted groups. The proposed state-level credit would supplement the federal incentive, giving Michigan job providers an extra boost to fill open positions and grow their businesses.

According to a recent U.S. Chamber of Commerce workforce study, Michigan has only 85 available workers for every 100 open jobs, and its 61.3% labor force participation rate is the lowest in the Midwest. Schmaltz said the new credit could help get more people off the sidelines and into meaningful employment.

“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.”

House Bills 5118-5119 were referred to the House Economic Competitiveness Committee for consideration.