DETROIT – Two Michigan state senators have introduced a bill to preserve tax credits for movie making in the state that would allow the state to award filmmakers tax credits of up to 42 percent for their production expenditures, instead of an absolute 40- or 42-percent.

Senate Bill No. 383 was introduced Thursday by Sens. Mike Kowall, R-White

Lake Township, and Virgil Smith, D-Detroit. Kowall, chair of the Senate Economic Development Committee, acknowledged that winning support for it is “going to be tough,” but “I’ve got a good feeling about it.”

Even though the state Legislature voted to eliminate the credits as part of a tax-

reform package Thursday, Senate Bill 383 could restore some incentives for the

industry.

Michael Finney, CEO of the Michigan Economic Development Corp., said that

under these terms, he expects the state’s film tax credits would vary from 10- to

30-percent. The actual number would vary depending on the state’s negotiations with

each production company. Kowall said he consulted with MEDC officials on the bill.

Finney also said the state would like to make TV commercials eligible for the

incentives for the first time.

He spoke during a public hearing about the film incentives held Friday by the Senate

Economic Development Committee at the new $80-million Raleigh Michigan Studios

in Pontiac.

Kowall said his bill would limit the amount of money the state could spend on film

incentives. But what form any cap would take is unclear.

In mid-February, Gov. Rick Snyder proposed putting a $25-million cap on

spending for the incentives, which are currently uncapped and are among the

most generous in the nation. The movie industry opposes this limit, saying it will

sharply curtail filming. It has been lobbying for a $180-million cap.

At the hearing, Raleigh Michigan executives confirmed for the first time that the Disney

production, “Oz: The Great and Powerful,” will be the first feature film to use the

studio’s seven sound stages. Filming is to begin in August and continue through the

rest of the year.

“Oz,” which received a $40-million tax credit last year, will be the largest movie to

film in Michigan and is expected to spend $105 million in the state. It is a prequel to

“The Wizard of Oz.”

Disney confirmed Friday that “Oz” will be directed by Michigan native Sam Raimi. The

movie is to directly employ 257 Michigan residents.

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