(The Center Square) – Michigan lawmakers have introduced bills they assert are “totally different” than Michigan’s past film incentive program, which was spiked by former Republican Gov. Rick Snyder in 2015.
The recently introduced Multimedia Jobs Act aims to give a 30% tax credit to Michigan companies that hire Michiganders. The bill sets a base 25% tax credit for in-state spending with an extra 5% awarded for including the words “filmed in Michigan,” “Pure Michigan,” “Michigan Film & Digital Media Office,” and the MiFIA logo.
Reps. John Roth, R-Interlochen, and Jason Hoskins, D-Southfield, introduced House Bills 4907-4908, while Sens. Dayna Polehanki, D-Livonia, and Jeremy Moss, D-Southfield, introduced Senate bills 438–439.
The new program would support film production using Michiganders and Michigan products. In the old, repealed film tax program, movies filmed in Michigan would often be staffed using actors from out-of-state, Roth said in a phone interview with The Center Square.
“The old credits weren’t liked as well. They actually took money out [of the state],” Roth said. “This one actually keeps money in Michigan.”
In the new program, money should stay inside Michigan because companies have to use Michigan talent or products, Roth said. Roth said Ford and GM and Chrysler film all their commercials outside the state of Michigan.
“It seems silly that we wouldn’t make sure that commercials for our products aren’t filmed outside Michigan,” Roth said.
The Michigan Film Industry Association didn’t respond to a request for comment. But Roth, who helped create both the old and the new program, said the new one focuses on helping Michiganders.
“This isn’t the old film credits,” Roth said. “This is production in Michigan, sustainable for the future,” Roth said. “It’s actually using Michigan talent and Michigan products to make whatever it is: it could be a documentary, commercials.”
Currently, more than 40 states have film and multimedia incentive programs. Under these plans, a transferable tax credit would help build a marketplace for projects to happen exclusively with Michigan-based companies.
Under the bill, production companies must commit to spending at least $50,000 for commercial photography, advertising commercial, or project under 20 minutes or at least $300,000 for productions over 20 minutes.
James Hohman, director of fiscal policy at the Mackinac Center for Public Policy, said Michigan’s last attempt at film tax credits cost taxpayers $500 million with little to show for a return on investment.
“Legislators haven’t learned anything from the last time, having wasted $500 million of the taxpayers’ money with little to show for it,” Hohman said in an email to The Center Square. “I would say that film subsidies are all show and no substance, but what they’re proposing would take a huge chunk of the state budget.
Hohman added: “Turn elsewhere, policymakers. There are better uses for taxpayer cash than handing it over to film producers.”
Roth plans to work on the bills over the summer and pursue them next legislative session.
