Article Summary –
Michigan lawmakers are reintroducing a film incentive program to attract film production companies to the region. The Multimedia Jobs Act will create a tax credit scheme, replacing the former 42% rebate of production costs, to encourage local job creation and boost customer traffic for small businesses. However, critics argue that the initial program failed and believe funding would be better spent on schools, infrastructure and housing, pointing to a 2010 report which stated that the film incentives cost more than they brought in.
Michigan’s Film Incentive Program Revival
Michigan legislators propose the second act of a film incentive program that earned the state major films such as “Batman vs. Superman: Dawn of Justice” and “Transformers: The Last Knight”. House Bills 4907 and 4908 aim to bring back Michigan’s film incentive program, shut down seven years after its 2008 inception, introducing the Multimedia Jobs Act for a tax credit for production companies filming in Michigan.
Proponents argue that these bills would create jobs and drive customer traffic to local businesses. Critics, however, express concerns due to the original program’s failure to establish a sustainable film industry and lack of taxpayer ROI. A 2010 report revealed that the program cost twice its income during its first year, citing the Great Recession and timing issues.
Rep. Jason Hoskins, Economic and Small Business Committee chair, assured the new bills are thoroughly reviewed to avoid the original program’s financial pitfalls. These bills offer a transferable tax credit as opposed to the former 42% production cost rebate, which can only be used in Michigan.
Alexander Page, Michigan Film Industry Association, states that the thriving multimedia industry could bring $6-$8 billion to Michigan should the film incentive program be enacted, owing to the rise of streaming platforms like Netflix and Hulu.
Eligible productions under the legislation could receive up to 30% in tax credits for hiring Michigan residents, 20% for nonresidents and 10% for supporting local businesses. A Michigan-specific logo inclusion could also earn a 30% tax credit. The incentive lasts for 10 years unless extended by lawmakers.
35 states, along with Washington, D.C., Puerto Rico and the U.S. Virgin Islands, already have some form of film tax incentive in 2022, as per the National Conference of State Legislatures. Jacob Whiton, a research analyst with Good Jobs First, voiced concerns about the high costs and low returns of such programs, suggesting better use of funds in schools, infrastructure, and housing.
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