MI HB5921

Creates a venture investment credit allowing taxpayers to claim 25% of qualified investments made in qualified businesses between January 1, 2011 and December 31, 2012 against state income tax liability.

Limits individual taxpayer credits to $250,000 per business and $250,000 annually across all businesses, with total statewide certifications capped at $9,000,000 per calendar year.

Requires Michigan Strategic Fund certification within 60 days of investment; credits are taken in equal installments over 2 years and may be carried forward up to 5 years if they exceed current tax liability.

Restricts qualified investments to seed or early-stage businesses with headquarters in Michigan, fewer than 100 employees, pre-investment valuation under $10,000,000, and existence of less than 5 years (or 10 years for university research-derived businesses).

Prohibits credits for taxpayers with felony convictions involving fiduciary obligations, fraud, or theft; those with unpaid tax liabilities; or those currently in bankruptcy proceedings.