LANSING – Governor Rick Snyder saw one of the products of the film production tax credit used against him in coverage of his plan to eliminate the program as part of his 2011-12 budget. The Los Angeles Times led its story on the proposal not with a picture of Snyder, but of Clint Eastwood as Walt Kowalski from his movie “Gran Torino,” filmed in Detroit, using a rifle to encourage other characters to leave his property.
“Get off my lawn,” was Snyder’s message to the film industry in calling for an end to the 42 percent credit, the paper said. And filmmakers in Michigan tend to agree.
“It’s a slap to the credibility of the entire state,” said Ken Droz, now a private film consultant but formerly with the Michigan Film Office and one of the authors of the current credit.
Snyder proposes to reserve $25 million to maintain monetary incentives. But the tax credit would end.
Droz said the credit has already attracted substantial investment in the state, not only in the couple of new permanent studios that have opened, but also in such areas as the catering companies that have opened to serve productions. And many young aspiring filmmakers who previously would have left the state are trying to develop projects here instead. “Nothing’s done more to stop the brain drain,” he said.
But not all in the industry are resigned to the loss of the industry or the credit.
“Certainly it’s our job now as an industry to convince our legislators that it’s creating jobs,” said Rick Hert, film commissioner at the West Michigan Film Office. “For many folks, they missed the whole concept that it’s the governor’s proposed budget.”
Hert said bringing legislators to filming locations has helped to change some minds on the value of the credit.
“It’s a compelling message when people talk about having been unemployed for many years and now they have steady work,” he said.
But many are still concerned that steady work is about to dissolve. Droz said its repeal could send him packing.
“I was about to print business cards yesterday,” he said. “Maybe I’ll go back to California.”
Droz said the credit was still needed to bring films, and their related jobs and money, to the state.
“It’s flawed; it’s not perfect; but to throw it away, you’re throwing away millions of dollars of investment,” Droz said. “We busted our tails to make Hollywood comfortable and able to film in this state.”
“If this credit were dropped, changed or eliminated, Michigan is not going to be in the mix anymore,” said Vans Stevenson, state affairs director for the Motion Picture Association of America. “Right now producers and film finance executives are looking to find the most affordable places to produce. I know there a lot of concern and reconsideration (about Michigan).”
Even discussion of repealing the credit, particularly as part of the governor’s budget presentation, is going to hurt the industry, Stevenson said. “The proposal does put the program in an uncertainty stage,” he said.
None of those contacted by Gongwer News Service had yet heard of any projects being put on hold, or being sped up to try to qualify for the credit before it can be repealed.
Michelle Begnoche with the Film Office said the credits that had already been approved (two so far this year) would be honored. She said the administration has not determined how to address the credit applications that have not been approved.
Begnoche declined to comment on the volume or tenor of calls the office has received since Snyder’s announcement.
Droz said the proposal has put the Film Office in a difficult position. “Carrie Jones (the director) now is in the position of promoting an industry her boss doesn’t want,” he said.
Hert said it meant something that Snyder left some money in the program. But he said a cap, particularly at about a quarter of the credits approved for last year, would stifle interest.
“If the film incentive goes away, you’ll see a dramatic reduction,” he said. “If there’s a cap, you’ll see a lot of productions not consider (Michigan) because they can’t be certain they will be under the cap.”
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
a>>
