LANSING – Studio owners, laborers and producers flooded a committee hearing Wednesday on the future of the state’s film credits, telling lawmakers that Michigan’s on-again, off-again love affair with providing incentives to the industry is a bad way to do business.

The Senate has passed legislation scaling back the film credits, but at the start of the hearing, House Tax Policy chair Rep. Kate Ebli (D-Monroe) made it clear the committee was not taking up any particular piece of legislation.

And House New Economy and Quality of Life Committee chair Rep. Ed Clemente (D-Lincoln Park) said as the state continues to diversify its economy, “We are fortunate the film industry took off as soon as the credit was signed into law. We’re trying to make sure the torch stays lit.”

But other lawmakers took aim at the industry receiving a 40 percent credit at a time when the state is slashing budgets for public safety and education.

“Is it your testimony that it’s worth it?” said Rep. Brian Calley (R-Portland).

Mike Manasseri with Big Screen Michigan said the film industry allows young people in the state to use their education and stay here.

“People are paying income tax as opposed to receiving unemployment, so it’s worth it,” he said.

But Rep. Pete Lund (R-Shelby Twp.) retorted, “Of course it’s working. We’re paying 40 percent of their bills. How about 40 percent of every piece of fudge on Mackinac Island is paid for by the state of Michigan?”

Manasseri shot back, “Do you want this industry here or not? You don’t even want it, I get it, but a lot of people do. No one was supposed to touch this in three to five years.”

Lund pressed others testifying before the panel on when they expect the state can start scaling back the credit.

Harvey Grace, chair of Grace & Wild Studios, countered, “You are making an investment of 40 percent. Your assertions are incorrect.”

He then went onto site studies showing when New Mexico offered its credit the return on investment was $1.50 for every $1 in credits and in Louisiana it was $6 for every $1 in credits.

Bill Black with Michigan Teamsters said the untold story of the film credits is the number of people put back to work driving trucks for film productions or working in restaurants or hotel rooms because of an uptick in business related to a film.

Besides their aim to protect the film credit, those testifying also advocated to include commercials in the credits and to reduce the investment threshold for receiving certain social media credits.

Former Rep. Andy Meisner (D-Ferndale), a lead advocate of the package last term and now the Oakland County treasurer, said he was disappointed the Department of Treasury interpreted the film credit law to exclude commercials.

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

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