Bill > HB4816

This bill introduces a new tax credit for Michigan taxpayers who make qualified investments in certain Michigan-based businesses starting in the 2025 tax year. The credit allows taxpayers to claim 50% of their investment, up to a maximum of $3,000 per business and $3,000 total per tax year. To qualify, investors must request certification from the Michigan Strategic Fund (MSF) within 60 days of making the investment. The MSF will develop an application process and establish criteria for what constitutes a "qualified business" and a "qualified investment." Eligible businesses must have their headquarters in Michigan, with at least 80% of their revenues and assets in the state, and primarily employ Michigan residents. The investment cannot be made in a business owned or employing a family member of the investor. If the credit exceeds the taxpayer's tax liability, the remaining credit can be carried forward for up to 10 years. The bill also includes language ensuring that any potential revenue losses from this tax credit will be compensated through annual appropriations from the state general fund to the state school aid fund.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4816