House votes to kill Michigan film incentives Oct. 1

After more than six years of Michigan film incentives that brought millions of dollars and thousands of jobs to the distressed state, a bill to end the incentives Oct. 1 narrowly passed the house with a 58-51 vote.

Killing the incentives could face opposition in the Senate and Gov. Rick Snyder doesn’t consider them a priority. 

The House voted one day after Gov. Rick Snyder argued it’s too early to end them.  He said they should be gradually phased out rather than end abruptly, to give the film industry time to become self-sufficient.

Led by the efforts of Senate Majority Leader Randy Richardville who left the legislature because of term limits, the legislature voted in December to extend the incentives to 2021 but Republicans have fought against them for years. 

The state spent more than $425 million on the incentives and $1.3 billion production has been returned since 2008, when Gov. Jennifer Granholm introduced them.  At that time, Michigan production spend was $2 million.  Two years later income from film was $250 million.

When Snyder became governor in 2011, the incentives were reduced to $25 million in grants and last year they were raised to $50 million.

Rep. Dan Lauwres, the Republican bill sponsor argued that “the state simply cannot afford to subsidize the film business or any business, with our constituents’ money.”

Democrat Jeremy Moss, who opposed HB 4122, said, “Movies shot here because of the incentives create jobs are highly sought after, well-paying and individually rewarding.  They create a buzz about the state that extends far beyond the ‘Pure Michigan’ tourism campaign that costs millions of dollars a year.

Seven films are slated to film in Michigan so far this year, the biggest being Paramount’s “Beverly Hills Cop 4.”  Last year’s blockbuster was “Batman vs Superman: Dawn of Justice,” among 15 films and innumerable TV shows and digital media productions.

For every dollar spent on film credits, $10 in economic activity is created.