Bill would offer residents a 50% credit to spur local investments in Michigan businesses

Representative Jenkins Arno introduced House Bill 48-16, saying the bill ‘‘is another opportunity for Michiganders to invest in Michigan businesses and allow us to take care of our own.’’ The sponsor said the proposal would create a tax credit intended to incentivize small-dollar, local investments in qualified Michigan businesses.

Under the terms described in committee testimony, the credit would equal 50% of an investor’s qualified contribution and could be carried forward for up to 10 years. Witnesses described the statutory structure as permitting investments in any ‘‘qualified Michigan business’’ that has the majority of its property, employees and sales in the state. Presenters said the credit was aimed at retail (non‑accredited) investors and said a $100 minimum investment threshold was being considered to broaden participation.

Outside witnesses…