Armand Assante, Director of Photography Erik Curtis (white hat), WOODTV8 Photojournalist Evan Linnert on the set of "The Steam Experiment" at Bull's Head Tavern in Grand Rapids, MI 9/10/08

 One Year Later: Michigan Film Incentives

 A year ago next Tuesday, April 7th marks one year since Michigan Governor Jennifer Granholm signed the film incentive package that provides up to 40% percent refundable or transferable tax credit for projects in Michigan, with an additional 2% available for projects in core communities.

According to a Michigan State University economic impact study, the incentives brought 32 projects (including “The Steam Experiment”), creating 2,763 jobs and creating $65.4 million in revenue to the state in 9 months of 2008 (since the incentives were signed in April).   Of that, $25.1 million was spent on direct wages and salary and $40.3 million was spent on Michigan goods and services.

Researchers estimate total production expenditures will grow 187% over the next four years (2008 to 2012) based on the experiences of Louisiana and New Mexico, who passed similar, but lower incentives in 2002.   Both states continue to experience year over-year growth in total in-state production expenditures.

The study also says Michigan film will likely “generate tourism… and other indirect benefits from film production”.

There is still at least one state lawmaker speaking out against

the tax incentives.   Last Wednesday, (March 25th) there was a new proposal to put a cap on the benefits.

The history and the future of the incentives was discussed March 25th at a panel discussion on Michigan’s Tax Incentives  and part of that discussion included Ken Droz from the Michigan Film Office saying ”ideally, we’d like to think the program can run its course and be allowed to have time to breathe and to mature and for the entire industry to gets its legs before any major changes are being done to it.”     The panelists agreed that while the state is staying ahead of other states like New Mexico and Louisiana,  more work has to be done to build infrastructure and train workers.

For more on the incentives, see Michigan Film Office Report:
http://www.michigan.gov/documents/filmoffice/MFO_2008_Annual_Report_269261_7.pdf

For more on the economic impact, see MSU Economic Study:
http://www.michigan.gov/documents/filmoffice/MSU_Economic_Impact_Study_269263_7.pdf