Michigan Film Program Sinks: Indiewire-Anthony Kaufman

Michigan’s Film Incentives Are Leaving. So Are Its Filmmakers

by Anthony Kaufman
Michigan’s Film Incentives Are Leaving. So Are Its Filmmakers

Films that utilized the Michigan credit included "Youth in Revolt," "Stone," "Transformers 3" and "Scream 4."

Michigan’s generous film production tax credits appear to have been too good to be true. Now, the state’s burgeoning film industry is losing its momentum and filmmakers are fleeing the state.

In 2008, Michigan created one of the nation’s most aggressive rebate programs with a 42% tax credit that provided unlimited rebates. Studios and independents rushed to the mitten-shaped state; among the studio projects that took advantage of the offer were “Transformers 3,” “Gran Torino” and “Scream 4;” indies included “Vanishing on 7th Street,” “Salvation Boulevard,” “Youth in Revolt” and “Stone.”

That changed in February, when newly elected governor Rick Snyder proposed reducing the credit from unlimited rebates to an annual $25 million cap.

“I got a call three hours later after the governor’s proposal that I was out of a job,” says production coordinator Jax Baker, calling from the road on her way to New Orleans.

The job was a cop drama starring 50 Cent, “Freelancers,” on which she was slated to be an assistant production coordinator. Rather than lose the job when it left Michigan for New Orleans, she moved with it. Baker has now decided that Louisiana will be her new home.

“I looked at my future in Michigan,” says Baker, who was born and bred in Grand Rapids, “so much so that I had to pack my bags and leave the state.”

The cap isn’t official yet, since legislature won’t take up the incentive issue until summer. However, the Michigan Film Office is operating according to the governor’s proposal.

On Monday, the state announced its first film to receive a credit since Snyder took office—Universal Pictures’ “Five Year Engagement.” The production has committed to $12.5 million in Michigan spending and is positioned to receive $5.26 million in subsidies, a sum that would account for more than 20% of the governor’s proposed $25 million cap. By comparison, Michigan approved nine productions for $9.7 million in credits in January-March 2010.

“Just the fact that the Governor opened his mouth has put the fear of God into producers,” says producer Matthew Tailford, who runs 10 West Studios, a three-year-old production facility in tiny Manistee, Mich. (pop. 6,856). “Because of his stance [and] the continual uncertainty, we have, with much reluctance, advised two films not to come to Michigan.” Tailford says he may shutter his Michigan shop and move back to Los Angeles.