Film incentives saved from cutting room floor
Amid a flurry of activity on the final day of the 2011 legislative session, Michigan Lawmakers approved a measure designed to revive Michigan’s stalled film incentive program.
The bill, much more clearly than the one it would replace, defines the criteria to be used in allocating the incentives.
The 2012 fiscal year budget (which began in October) set aside $25 million for the program.
But the Michigan Film Office decided on Sept. 30 that it would stop taking applications for incentives until the process for providing grants was clarified.
The new direct grant program isn't as lucrative for producers as the old 42 percent across-the-board tax credits were. But assuming Gov. Snyder agrees to sign the measure into law; it will at least put the film office back in business.
Among its key provisions, the bill provides higher incentives for producers who spend a greater portion of their overall budget on Michigan businesses and workers. A major criticism of the previous program was that it offered no such incentive. The bill also requires that all productions make reference to the Pure Michigan tourism campaign.
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The true economic impact of the credits won’t be known for several years. Michigan's film industry must ramp up to realize their full value. Building studios, adding post-production facilities, and training the workers that will be needed to staff them can’t happen overnight.
And estimates on the economic value to hotels, restaurants and other businesses serving production companies vary widely. But if one has faith in the natural assets Michigan brings to film producers, and if the Legislature keeps incentives in place for the long term , the result will likely be a net positive for its taxpayers.
Finally, there’s the cool factor. How does one gauge the intangible value of having celebrities like Clint Eastwood, Jack Nicholson, George Clooney and Drew Barrymore, among many others, filming and hanging out in Michigan?
Quiet on the set
Roll camera
Ready...aaaand action
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