Click to Skip Ad
Closing in...
Indiewire logo

Can Michigan's Tax Incentives Be Saved?

ReelPolitik By Anthony Kaufman | ReelPolitik July 14, 2011 at 11:50AM

Can Michigan's Tax Incentives Be Saved?
0

There's nothing like messy state politics to keep filmmakers on their toes.

State tax incentives have become crucial to getting films made in the U.S., and it seems every month, there's cause for fear or cheers with the ever-changing currents of state programs.

Michigan, which had the most aggressive rebate in the country (up to 42%), turned out to be too good to be true, as I reported in March for indieWIRE, but on Wednesday, Michigan lawmakers have tried to revamp the subsidies and keep them alive.

According to reports in the Associated Press and Michigan papers, the incentives wouldn't be as lucrative as before, but supporters said they would be competitive with other states, thereby (hopefully) keeping the state's burgeoning entertainment industry from collapsing.

“I don’t want to pull the rug out from under the industry,” Senate Majority Leader Randy Richardville said. “Let’s put a structure together that’s competitive with the rest of the country. And then decide if we can afford to keep the industry.”

The current program expires at the end of the year. While Republican Governor Rick Snyder agreed to fund $25 million in new film grants for the next two fiscal years, Richardville proposed a five-year plan funded through annual appropriations, and was open to putting forth as much as $100 million annually, which the state currently spends.

According to Michigan Live.com,, the Senate plan would provide the following rebates:
- 27% of direct production expenditures in Michigan.
- 30% percent of Michigan personnel expenditures through 2015, when it would dip to 25%.
- 27% percent for qualifying personnel costs for non-Michigan workers, which would drop to 12% in 2015.

Veteran producer Ted Hope recently told me about the importance of incentives to getting his films made. A number of productions, he said, "need an incentive to happen. It is absurd to see the tax incentives as anything other than a good thing. They create jobs, they bring revenue where it is needed and they are the only thing close to a cultural policy in this country.”

This article is related to: Economic Issues

Follow us

E-Mail Updates



Recent Comments

By Bob Connors: The thing to remember is the video has some actual data but it's conclusions are far fetched and inaccurate. This is a Progressive propaghand…

Who is "Politizane" and What's Next for the Income Inequality Viral Video

Mar 21th, 2015 8:47am

By Ostlee: This makes very sad reading - i feel for the people of Maldives. Everyone should boycott the island as a holiday destination until Nasheed…

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 13th, 2015 5:35pm

By Ahmed Shahid: Release the first democratically elected president. The only president of Maldives who has reached the people of Maldives, heard them and…

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 12th, 2015 9:37am

By Hanne Neve: Please take care of your country and the climate by freeing your real selektet president.

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 11th, 2015 9:09am

By Iqbal: Please release President Nasheed

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 10th, 2015 10:27pm

By Martha Robertson: I strongly urge the immediate release of Nasheed!

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 10th, 2015 9:37pm

By Ned Rollins: Bad business, going to bite you.

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 10th, 2015 3:47pm

By John Painter: The guy isnt a terrorist.

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 10th, 2015 12:00pm

By Sofia Vera: I support Presdient Nasheed and add my name to this letter of support for his release.

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 10th, 2015 11:14am

By Margarett R Mulkey: A civilized society is required of the current government of the Maldives. The world is watching injustice and crimes, and many realized thes…

Documentary Filmmakers and Activists Call for Release of "Island President" Nasheed

Mar 10th, 2015 10:53am