Qualified Equity Investment

A Qualified Equity Investment (QEI) is a financial contribution made by an investor to a qualified small business or fund, often with tax advantages. It typically involves purchasing equity or ownership stakes, like shares, in the company. QEIs are designed to encourage investment in emerging or small-scale businesses by offering benefits such as tax incentives or credits to the investor. The investment must meet specific criteria set by regulations to qualify, ensuring that it supports targeted economic development or innovation objectives.