LANSING – Reducing the state’s tax credit for filmmakers will crush the budding industry in Michigan, those working in the field said at a Capitol rally Tuesday.

Talk continues to swirl that Gov. Jennifer Granholm and lawmakers are looking at curbing the credit, which allows a 40 percent tax credit on productions filmed in the state and other incentives, as a way of addressing the state’s combined $2.8 billion deficit in the general fund and School Aid Fund.

But about 75 of those who work in the nascent film industry in Michigan said reducing the credit would wreck one of the few bright spots in the state’s bleak economy.

“No cuts, no changes, let the investment grow,” said Hugh Holesome, a Southgate-based actor and sound mixer.

The credit has meant greater use of hotels, restaurants and other businesses as Hollywood studios set up shop in Michigan, supporters said.

Sen. Jason Allen (R-Traverse City) and Sen. Gilda Jacobs (D-Huntington Woods) spoke at the rally and praised the success of the credit.

“In the past year, we have seen great results,” Allen said.

Studios have shot a number of movies in Jacobs’ southeast Oakland County district. She said while the credit might have to be tweaked, Michigan should make sure it remains the most generous film tax incentive in the nation.

“The incentives are working,” she said.

The arrival of film studios has translated into business for her family’s insurance company, said Janet Williamson, who works for Cranbrook Insurance Incorporated in Bloomfield Hills. The firm has insured films shooting here, including a $20 million movie, Williamson said.

Williamson said her family’s firm already is losing business because of studios that decided to film their movies to other states because of reports that Michigan might reduce its incentives.

But critics of the credit urged officials to repeal or curb it. Charlie Owens, director of the Michigan Chapter of the National Federation of Independent Business, said the credit essentially transfers money from businesses that pay the Michigan Business Tax to film companies claiming the tax credit.

“If this were a movie, it’d be Robin Hood – except in this instance, Michigan is stealing from the little guys to fund the movie studios,” Owens said in a statement.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

a>>