LANSING – A package of bills providing new film incentives, including some of the most generous of any state, won unanimous approval Tuesday in the Michigan Senate and House committees and is headed toward a rapid vote in both chambers.

Still to be worked out are some relatively minor amendments and deciding which of the Senate and House bills will be included in the final package, but Sen. Jason Allen (R-Traverse City), chair of the Commerce and Tourism Committee, said it is important to act quickly so the state can begin to take advantage on plans being made by film production companies.

“This has a lot of bipartisan support. It has a lot of potential,” Allen said.

Business, sales and income tax rebates are provided, and for the first time, filmmaking would be eligible for tax breaks provided by the Michigan Economic Development Authority.

The credits generally are to last through September 30, 2015.

Reflecting the changed role and expectations to capitalize on the economic development potential of filmmaking the Michigan Film Office will be moved from the Department of History, Arts and Libraries to the Michigan Strategic Fund. That would occur May 3.

The package permits the film office and Department of Treasury to approve credits worth up to $20 million a year and creates a new loan program. State recreational and military property, as well as local government property, would be made available at no cost, with economic benefits considered the compensation for using the property.

Approved by the House Commerce Committee and Senate Commerce and Tourism Committee were:

? HB 5841 /SB 1168 , providing a 42 percent credit – available to productions whose spending in Michigan are at least $50,000 – against the business tax for production costs in core communities, 40 percent credit for costs accumulated outside of core communities but still in Michigan and 30 percent for employee costs. HB 5844 /SB 1171 allow an equal income tax credit, but companies could not get both.

? HB 5842 /SB 1169 and HB 5843 /SB 1170 repealing the sales tax credit for film companies as of December 31, 2009 and transferring the film office. HB 5850 /SB 1177 and HB 5856 /SB 1183 also deal with the transfer of the office which is given new promotional powers and new tools to assist film companies in locating and producing projects, creates a position of film commissioner, creates a film advisory council and creates a film promotion fund to support the office.

? HB 5845 /SB 1172 providing an income tax deduction for all or a portion of a gain from an original equity investment of at least $25,000 if a company produces more than one film in Michigan within two years.

? HB 5846 /SB 1173 providing a 25 percent business tax credit for an investment of $100,000, bumping up to $250,000 after January 1, 2009. The credit would be available until September 30, 2015.

? HB 5847 /SB 1174 making film and media businesses eligible for MEGA tax incentives.

? HB 5848 /SB 1175 creating a film and digital media investment loan program under the Michigan Strategic Fund. The maximum loan to any film company would be $15 million. A Choose Michigan Film and Digital Media Loan Fund would be available to companies eligible for MEGA or MBT credits, providing $500,000 or more in loans for periods up to 10 years. Production companies would also be eligible to receive loans from the Small Business Access Program, without having to qualify as a small business.

? HB 5849 /SB 1176 providing a 50 percent MBT credit for job training costs.

HB 5851 /SB 1178 , HB 5852 /SB 1179 , HB 5853 /SB 1180 , HB 5854 /SB 1181 and HB 5855 /SB 1182 allowing use of state and local government property free of charge to film productions.

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