Legislation allowing individuals who invest in qualifying Michigan-based businesses to claim an income tax credit was reported by the House Finance Committee this week and referred to the House Rules Committee for consideration.
Key Points:
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- House Bill 4816 was introduced by Representative Nancy Jenkins-Arno (R-Rollin Township).
- Under the bill, a taxpayer who makes a certified qualified investment in a Michigan-headquartered business may claim a credit equal to 50% of the investment.
- The credit is limited to a maximum of $3,000 per investor per business per tax year.
- To qualify, the taxpayer must have certification that it’s determined to be a qualified investment from either an independent certified public accountant or the Michigan Strategic Fund within 60 days of investing.
- According to the nonpartisan House Fiscal Agency, the credit would impact both the School Aid Fund and the general fund by an undetermined amount.
“This bill gives Michiganders a real opportunity to invest in their state and local companies and be rewarded for it. Supporting homegrown businesses means strengthening our communities and growing Michigan from the inside out,” said Representative Jenkins-Arno.
