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New film incentive bill introduced

May 18, 2011

Michigan’s film tax credits, eliminated under the tax reform approved last week by the state Legislature, might soon make another appearance.

State Sen. Mike Kowall, R-White Lake Township, introduced a bill on May 12 that would reinvent these tax credits and still offer filmmakers an incentive to film in state.

Kowall said this bill would give the Michigan Economic Development Corporation, or MEDC, more authority over which filmmakers get the credits and the amounts they receive, making sure the projects that are funded bring the state the most benefits.

“It’s not just an open checkbook (anymore),” he said. “(The MEDC) will be able to judge the jobs on their own merits.”

Filmmakers whose productions had budgets of more than $50,000 previously were offered by the state a rebate of up to 42 percent of their production companies’ costs.

But Gov. Rick Snyder and other critics said these incentives were costing Michigan without inciting enough economic growth.

Some residents have seen the state prosper from the increased activity spurred by filmmakers.

Dominic Cochran, a partner of Lansing-based production company Ahptic Film and Digital, said filmmakers in Michigan spend a lot of money. Lumber yards and restaurants as well as car rental and antique shops, among other businesses, see an increase in costumers when a movie is shot in their town, he said.

While in production, a film crew also must be hired to facilitate the movie’s creation. Much of this hiring is done in state, creating Michigan jobs, Cochran said.

“Movies create jobs and put cash back into the economy immediately,” he said. “That’s why (residents) want those credits back.”

Kowall said the film tax credits should not simply be eliminated.

“(When you are) told by one administration that you’re going to get a tax credit, and then another administration comes in and says, ‘No, you don’t have them anymore,’ where does that leave (filmmakers)?” he said. “We need to come to some sort of middle ground.”

But this middle ground likely will mean less government money for such credits, Kowall said, although the exact amount allocated for these credits hasn’t been determined.

With such tax credits, Steven Miller, an assistant professor and director of MSU’s Center for Economic Analysis, said Michigan residents are hoping to see investments being made in infrastructure.

They want to see brick and mortar laid, like with the creation of sound studios, Miller said.

“We’re (currently) incentivizing an industry that locates in Michigan and then departs,” he said. “I think the public is looking for something a little more stable in Michigan.”

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