HB 4816 Michigan House · 2025-2026 Regular Session

Individual income tax: credit; credit for certain investments in Michigan businesses; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

HB 4816 creates a new individual income tax credit for Michigan residents who invest in certain Michigan businesses. It directly affects Michigan taxpayers who make qualifying investments in eligible local companies. The bill adds a specific provision to Michigan's tax code allowing these investors to claim a credit against their state income tax. This credit aims to incentivize personal investment in Michigan-based businesses through a direct tax benefit.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Aug 2025

Committee Review

Apr 2026

House Passage

Nov 2025

Senate Passage

Governor

Introduced Aug 26, 2025 Last action Apr 16, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute (H-2) → Substitute (H-3) · 5 edits

MODERATE

The bill text was replaced with the full legislative content of Substitute (H-3), which introduces a new income tax credit for businesses investing in Michigan. This version expands the credit to 50% of qualified investments (capped at $3,000 per business and $3,000 total per taxpayer) and includes specific rules for certification, carry-forward of unused credits, and a $10 million annual cap on total claims.

Scope change

The bill's scope expanded to include detailed eligibility criteria for 'qualified businesses' (requiring 80% of revenue and assets in Michigan) and 'qualified investments' (excluding investments where the investor or family members have preexisting relationships with the business).

ELIGIBILITY

Added specific definitions for 'qualified business' requiring 80% of gross revenues and assets to be in Michigan, and 'qualified investment' excluding investments where the investor or family members are employees or owners.

REQUIREMENT

Added a requirement for taxpayers to obtain certification from an independent certified public accountant to claim the credit, specifying what the certification must include.

FISCAL

Added a $10,000,000.00 annual cap on the total amount of credits allowed to be claimed, with a proration mechanism if the cap is exceeded.

TIMELINE

Added a provision allowing unused credits to be carried forward for up to 10 tax years or until used up, whichever occurs first.

DEFINITION

Added definitions for 'certified public accountant' and 'family member' to clarify who qualifies for the credit and who is excluded from the investment.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 16, 2026

Committee

referred to second reading

lower

Apr 16, 2026

Lower · Passed

reported with recommendation with substitute (H-3)

lower

Nov 4, 2025

Lower · Passed

recommendation concurred in

lower

Nov 4, 2025

Lower · Passed

reported with recommendation for referral to Committee on Rules with substitute (H-2)

lower

Aug 26, 2025

Committee

referred to Committee on Finance

lower

Aug 26, 2025

Introduced

introduced by Representative Rep. Nancy Jenkins-Arno

lower

1 primary · 9 co-sponsors