From Rachel Abrams at Variety

2,000 protest Michigan Gov.'s film cuts
Albom keynotes demonstration against Snyder's proposal

By Rachel Abrams

More than 2,000 people gathered in Michigan Thursday to protest Gov. Rick Snyder's proposed cuts to the state's tax incentive program for the entertainment biz, according to reps for film finance firm Michigan Production Capital.

Ken Droz, a private consultant and former communications director for the Michigan Film office, organized the event at a conference center outside of Detroit.

Author and columnist Mitch Albom, a vocal opponent of the governor's proposal, is the keynote speaker.

The proposal, part of a $1.8 billion budget cut for the state, outlines a plan to cap Michigan's tax incentive at $25 million annually. At 42%, Michigan's refundable tax credit is among the nation's most generous, and authorized more than $160 million in rebates last year alone.

The protest represents a nervous climate among Michigan's film and service industries. The current program, in place since April 2008, has contributed to the opening of several studios and post-production houses which service the dozens of productions which have come in each year.

"Just saying what he said I think scared a lot of movies away," said Michigan-based Pixofactor Entertainment co-founder and CEO Sean Hurwitz.

Since Snyder's announcement last week, several productions, including "The Avengers," have pulled out of filming in the state.

According to reps for film offices in other states that offer substantial tax incentives, several stuios and post-production houses with shops in Michigan have inquired about moving their shops there.

While the legislature likely won't vote on Snyder's bill until the summer, his office has the power to limit the program.