I am not eligible for the federal exclusion of unemployment income because my modified Adjusted Gross Income (AGI) exceeds the federal threshold. Can I still exclude that unemployment income from the Michigan Individual Income Tax Return, MI-1040?

No.  There is no authorization under the Michigan Income Tax Act to exclude unemployment income from the State income tax return. To the extent unemployment income is included in AGI under federal law, it will be taxable on the MI-1040.