Granholm Calls on Legislature to Create Tax Deductions for Transitioning Workers
Governor Jennifer M. Granholm (D, MI) called on the Michigan Legislature earlier this to create a new tax deduction for workers transitioning from jobs in the auto industry into new careers. The deduction is aimed at auto workers taking an early retirement incentive or buyout.
“As workers from Ford, General Motors, Delphi and other auto makers and parts suppliers transition from their jobs into new careers, I want to make sure they have assistance in enhancing their education or creating a new business,” Granholm said. “The ingenuity and work ethic of our industrial workforce can be a tremendous asset in the new economy that is emerging in Michigan.”
Granholm’s proposal would create an income tax deduction equal to the amount of qualified education, training, and relocation expenses paid by recipients of an early retirement incentive or buyout. This deduction would assist taxpayers displaced due to industrial reorganization with the transition into new careers. The deduction would be available for the tax years 2006 through 2009 and would be limited to $10,000 per year for education and training expenses. This deduction would be limited to workers who accepted an early retirement or buyout offer from an automobile manufacturer or supplier. The taxpayer also would be required to be a Michigan citizen on the last day of the tax year.
Granholm added that she also is calling for a new deduction of up to $40,000 for new business start-ups by workers who accepted an early retirement or buyout offer from an automobile manufacturer or supplier.
Information on the various tools available to those seeking jobs and those transitioning into new careers from the auto industry is available at www.michigan.gov/newjob
