Bill > SB0115

This bill creates a new tax credit for individual taxpayers who invest in certain Michigan-based businesses, allowing them to claim a credit equal to 50% of their qualified investment, up to $3,000 per business and $3,000 total per tax year, starting January 1, 2025. To qualify, investors must request certification from the Michigan Strategic Fund (MSF) within 60 days of making the investment, and the investment must comply with state and federal securities laws. The MSF will develop an application process and establish criteria for what constitutes a "qualified business," which must have its headquarters in Michigan, derive at least 80% of gross revenues from in-state operations, and have at least 80% of its assets in the state. The investment cannot be made in a business owned or employing a family member of the investor. If the tax credit exceeds the taxpayer's tax liability, the excess can be carried forward for up to 10 tax years. The bill also includes provisions to ensure that any revenue losses from this tax credit will be compensated by appropriations from the state general fund to the state school aid fund, thereby maintaining educational funding levels.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0115