Fearful that legislators will cap or kill Michigan’s 42% incentives, about 100 film industry workers rallied at the capitol in Lansing Aug. 18, petitioning legislators to keep the incentives in place.
The rally was organized by the Michigan Film Alliance to demonstrate the importance of keeping the “first-tier” incentives that have benefited thousands of Michiganders throughout the state.
But with the state deficit of $2.8 billion, many believe the film credits will have to give at least a little, the Lansing State Journal reported.
Gov. Jennifer Granholm reportedly proposed cutting off a few percentage points. A Granholm spokeswoman would not confirm that, but said Granholm “continues to support the film incentives…They are the most robust film incentives in the nation and we want to maintain that.”
Michigan will pay out up to $100 million to film companies in the current fiscal year and $150 million in the next, although the Michigan Film Office says the numbers will be lower.
A bill before the state Senate would cap the incentives at $50 million, which would effectively diminish (think Wisconsin) what has turned into a major new industry for the depressed state.
While movie spending hasn’t been tabulated for 2009, 85 production applications were filed with the state. In 2008, when the incentives were enacted, revenue soared to $125 million from $2 million the previous year.
Jim Burnstein, a screenwriter and professor at the University of Michigan, who helped the state develop the tax credit, said he’s worried the tax credit will become a political target for lawmakers to cut for short-term gain.
“We have finally got the imagination of people in Michigan that there can be another industry here other than the auto industry. I say give it five years before you say we can’t do this.”
