MI SB0640

Reduces minimum initial equity investment requirement for qualified business deduction from $100,000 to $25,000 for tax years beginning after December 31, 2006.

Extends deadline for making qualified business investments from December 31, 2009 to December 31, 2012.

Allows taxpayers to deduct capital gains from qualified business investments if reinvested in another qualified business within one year, subject to specific criteria for seed or early-stage businesses.

Defines qualified businesses as those engaged in competitive edge technology (advanced automotive, alternative energy, homeland security, or life sciences technology) with headquarters or majority of employees in Michigan.

Applies proportional adjustments for nonresidents and part-year residents regarding personal exemptions and other income tax deductions.