LANSING – The Michigan House Commerce Committee and Senate Commerce and Tourism Committee heard from scores of people involved in the film industry on Tuesday who urged lawmakers to act quickly on a package of bills providing tax credits, job training and loans for productions in Michigan.
While neither panel voted on their respective bills, House Commerce Chair Rep. Andy Meisner (D-Ferndale) said members heard the calls for urgency, but are also balancing that with getting the legislation right in order to grow and keep the film industry here.
Identical legislation has been introduced in both chambers.
HB 5841 and SB 1168 provide a 42 percent credit against the Michigan Business Tax for direct production expenditures in core communities and a 40 percent credit for expenditures accumulated outside of core communities. To qualify, a production would have to spend at least $50,000 in the state.
HB 5842 and SB 1169 repeal the current sales tax credit for motion picture companies effective December 31, 2009. HB 5843 and SB 1170 allows for disclosure of certain information if it’s necessary for the administration of the sales tax or business tax credit.
HB 5844 and SB 1171 allow production companies to claim a credit against the income tax equal to that available for the MBT bills, but would not allow a company to receive both credits.
HB 5845 and SB 1172 provide an income tax deduction for all or a portion of a gain from the original equity investment of $25,000 or more if a company engages in more than one production in the state within two years.
HB 5846 and SB 1173 provide a MBT credit for an investment of $250,000 or more for a film or digital media infrastructure project.
HB 5847 and SB 1174 include film and media production businesses among those eligible for Michigan Economic Growth Authority tax incentives.
HB 5848 and SB 1175 deal with loan programs through the Michigan Strategic Fund. The bills allow eligible production companies to receive a loans from the Small Business Access Program, create the Michigan Film and Digital Media Investment Loan Program as a separate part of the established Loan Enhancement Program and establish the Choose Michigan Film and Digital Media Loan Fund with a minimum loan amount of $500,000 and a maximum term of 10 years.
HB 5849 and SB 1176 provide a MBT credit for production companies engaged in job training expenditures to provide on-the-job training for Michigan residents and film crews.
HB 5850 and SB 1177 transfer the Michigan Film Office to the Strategic Fund, create a Michigan film commissioner and establish a fund for the Michigan film promotion.
HB 5851 , HB 5852 , HB 5853 , HB 5854 , HB 5855 , SB 1178 , SB 1179 , SB 1180 , SB 1181 and SB 1182 allow film productions to use state and local government property free of charge.
HB 5856 and SB 1183 remove the film office from the Department of History, Arts and Libraries.
Among those testifying before the committees were Detroit Free Press columnist and author Mitch Albom, film executive Mike Binder and actor/director Jeff Daniels, who all said they have been contacted about what Michigan is doing to its film incentives.
All three men said the bills will not only bring jobs to the state, but will allow people to come back to Michigan and for young people already here to have a shot at being a part of the industry.
“This sends the word out that Michigan is willing to reinvent itself,” Binder said.
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
a>>




