MI HB4116

Allows taxpayers to claim a credit against Michigan income tax equal to 50% of qualified investments made in certified Michigan businesses during the tax year.

Requires taxpayers to request certification from the Michigan Strategic Fund within 60 days of making an investment and attach the certificate to their annual tax return to claim the credit.

Permits unused credits exceeding annual tax liability to be carried forward for up to 10 tax years to offset future tax liability but does not allow refunds of excess credits.

Defines "qualified business" as a Michigan-based business with headquarters, domicile, and majority of employees in Michigan that derives at least 80% of gross revenues and holds at least 80% of assets in the state.

Defines "qualified investment" as a cash or cash equivalent investment in a qualified business, excluding investments where the investor or family members are employees, owners, or have a preexisting fiduciary relationship with the business.