Posted 29 November, 2009 in MI News
(as advised by Incentives Office)
The Michigan Department of Treasury has advised producers to anticipate up to a 60 day wait to receive their Post-Production Certificates; previously, producers assumed that applications submitted prior to December 15 would be OK. (The Post Production Certificate may not be requested until the CPA audit has been completed and filed). This could be quite costly to producers, as the Certificate must be filed along with a tax return when requesting a rebate. If a Post-Production Certificate is not approved by December 31 (and if the parent company operates on a calendar year), then the rebate will not be processed until 2011.
A number of producers are in Michigan negotiating with Treasury, as they have projects that will wrap in December. A few solutions have been suggested, and we will keep you updated.
Proposed legislation (HB838) reducing the refundable tax credit rebate (actually a transferable tax credit) from 42% to 39% for ATL and resident hires in core communities, and materials purchased in core communities; 37% for resident hires, ATL and materials in non-core communities; non-resident hires would remain at 30%. Salaries would be capped at $1 million per hire. Favorable film testimony was heard today in Lansing, the state capitol. Should this legislation pass and become law, it will not apply to Applications approved prior to the date the law takes effect.
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