NEWS
Posted 1 July, 2010 in MI News
Courtesy of the Entertainment Economy Institute:
The Detroit News
Louis Aguilar
April 29, 2010
In the two years since Michigan adopted the most generous film incentives in the country, critics continue to question whether the tax breaks are generating enough of what the state needs most: jobs.
Production executives and union officials who represent film workers say the tax breaks are working. In fact, they say, the number of freelance jobs is growing, drawing mid-career professionals and young creative types.
And with spring and summer film production getting ready to ramp up, they warn of a looming labor shortage unless more people are trained. They also say the industry would dry up in Michigan if the state’s tax incentives were ended.
Overall, film production employment has fallen in Michigan and nationally, according to one analysis of federal statistics done by the Mackinac Center for Public Policy, a free-market-oriented research group in Midland. And film studios have been slow to follow through on promises to construct permanent production facilities in Michigan.
Federal data show that motion picture and sound recording industry employment in Michigan declined 9.8 percent to 5,270 between April 2008 and September 2009, the most recent information available. That compares with an 8.9 percent decrease nationally.
“The reality is that the state is redistributing millions of taxpayers’ dollars to one industry that happens to be employing fewer people,” said James Hohman, a fiscal policy analyst at the Mackinac Center. The state refunds up to 42 percent of production costs to companies that film in Michigan.
Click here for full article: http://www.detnews.com/article/20100429/BIZ/4290333/1001/Mich.-film-jobs-in-flux-as-debate-rolls-on
Posted 22 June, 2010 in MI News
Courtesy of Cast & Crew Incentives Program:
Today, the Michigan Department of Treasury released a notice explaining their position on film production credit qualified vendors. The Michigan Department of Treasury and the Michigan Film Office, will not make determinations or issue letters designating who is, or is not, a qualified vendor for purposes of the Michigan Business Tax film production credit authorized by MCL 208.1455. The statute does not utilize or define the term “qualified vendor”.
Click here http://www.castandcrew.com/Michigan_Business_Tax.pdf for the full explanation of the factors the State of Michigan will consider when evaluating whether a specific transaction is a qualified “direct production expenditure” that is eligible for the film production credit.
Posted 3 May, 2010 in MI News
The bill which was introduced would remove the refundability aspect of the current incentive. For agreements entered into on or after April 16, 2010, if the tax credit allowed exceeds the tax liability of the company for the tax year, the excess will no longer be refunded.
Posted 20 April, 2010 in MI News
The current law includes language that a production company must include an acknowledgment that the production was film in Michigan. If passed, this bill will require all qualified productions to include, at a minimum, a “Filmed in Michigan” logo in the end credits similar in size and placement to other logos. In the event that no logos will be used in the end credits, the end credits must include the statement “Filmed in Michigan using Michigan’s Film Production Financial Incentive” or a similar statement approved by the Michigan Film Office. The “Filmed in Michigan” logo will be developed by the Michigan Film Office to be supplied to qualified productions.
Posted 24 March, 2010 in MI News
Michigan’s infrastructure continues to expand, with the opening of With a Twist Studio’s 3D Screening room in Michigan, first in the state. The screening room complement’s With a Twist’s CGI, VFX and 3-D facility in Rochester Hills, MI. The website is www.withatwiststudio.com.
Posted 7 March, 2010 in MI News
As part of the budget process, Governor Granholm submits a report detailing all tax breaks given up to the state. Included in that list for her next budget is an increase from $116 million to $155 million for the “movie tax credit.”
http://michiganmessenger.com/34746/granholm-reports-on-state-tax-breaks
Posted 31 January, 2010 in MI News
http://www.metromodemedia.com/features/hollywoodeducationdetroit0143.aspx
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.
Posted 20 September, 2009 in MI News
Granholm says lawmakers to pass budget next month
MARK HORNBECK
Detroit News Lansing Bureau
Lansing — Gov. Jennifer Granholm predicted today lawmakers will pass a budget next month and avoid an Oct. 1 state government shutdown despite “tempers flaring” in budget talks.
She also said she does not want to “gut” the state’s film incentive program and indicated revenue increases are likely needed to avert dangerous budget cuts.
“I believe there has to be a blend of solutions,” said Granholm, who, according to sources, has proposed revenue increases and tax credit savings of about $685 million to help balance a budget for next year that is $2.8 billion out of whack.
“There will be more significant cuts. But I don’t want to cut so deeply it puts Michigan citizens in danger.”
Granholm and legislative leaders have been huddling behind closed doors for months trying to reach an agreement on the fiscal year 2010 budget, which takes effect in October.
A growing chorus of observers is saying the Republican-controlled Senate, the Democrat-dominated House and the Democratic governor are so far apart that the likelihood of a government shutdown is increasing. State government came to halt for a few hours in 2007 over a budget impasse.
“I think we will get an agreement without a shutdown,” Granholm said, but added: “Tempers are flaring behind the scenes.”
Among proposals made by Granholm is a slight reduction in the nation’s highest 42 percent tax break for film production. The governor did not back off that plan today, but said she doesn’t favor deep cuts or elimination of the controversial credit.
“I still want Michigan to be the most attractive state for the film industry,” Granholm said.
A film trade group rallied at the Capitol today and argued against proposals that would reduce or cap tax incentives for film companies.
The Michigan Production Alliance was among the groups lobbying to try and prevent possible budget cuts.
Critics say the film credit costs the state more than it is worth and proposals have been introduced to scale back the program.
mhornbeck@detnews.com”>mhornbeck@detnews.com (313) 222-2470 The Associated Press contributed.
Posted 28 August, 2009 in MI News
BY KATHERINE YUNG • FREE PRESS BUSINESS WRITER • July 21, 2009
Watching crews do a midnight filming of a burning house north of Chelsea for the Robert DeNiro thriller “Stone.” Delivering a speech at the 50th anniversary celebration of “Anatomy of a Murder,” the 1959 James Stewart drama filmed in Marquette. Running an office in Michigan where the telephone doesn’t stop ringing.
Advertisement
For Janet Lockwood, the longtime director of the Michigan Film Office, 2009 is turning out to be one of the most exciting years for making movies in the state she loves. Lockwood expects 45 or 50 productions to film in Michigan this year, up from 35 in 2008. The increase is the result of the state’s tax incentives for film, TV and digital media productions, the most generous in the nation.
In an interview, Lockwood shared her thoughts about one of the state’s growing industries.
QUESTION: How is Michigan’s film industry faring?
ANSWER: I am expecting quite a few films this summer. (She wouldn’t drop any names.) There are much more quality applications this year. It’s a little slower than some people thought, but that’s because of the economy.
Q: We have several production studios coming soon. Is there anything else the state needs in … infrastructure?
A: More equipment. We run out of that stuff very quickly, and it comes from out of state. We are out of stuff. I want more crews. I want more equipment. I want more films. I am quite greedy.
Q: Are the incentives in any danger of being eliminated?
A: I see them in no danger of being eliminated. They are the shiny spot on the map right now. There is a small contingent in the Legislature that supports capping them. It doesn’t look real strong to me at this minute.
Q: What is your response to criticism that the state is paying out more than it gains?
A: They are just counting sales and income taxes. They don’t count spending on hotels, rental cars, lumberyards, florists, etc. … The gain far exceeds the cost.
Q: What part of the state has benefitted the most?
A: The big winner is metro Detroit. Grand Rapids has made a few bucks. Ann Arbor is a popular, popular place. The hotels there are happy as clams.
http://www.freep.com/article/20090721/BUSINESS06/907210335/And-the-winner-is…metro-Detroit
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