Legislation Aiming to Revive Michigan’s Film Industry Takes a Significant Leap

Making Movie Magic Again: Michigan’s Bold Move to Jumpstart Its Film Sector

Summary

Almost a decade has elapsed since the termination of Michigan’s film incentives. However, this week marked a pivotal advancement for a new set of bills aimed at rejuvenating the state’s film industry.

On Tuesday, the Michigan House Economic Development and Small Business Committee approved the Michigan Multimedia Jobs Act, setting the stage for its consideration by the full State House. This move comes nine years subsequent to the cessation of the state’s film incentives by former Gov. Rick Snyder.

Rep. Jason Hoskins of Southfield, who co-sponsors the bill, highlighted that the legislation introduces a tax credit intended to bolster the production of films, TV shows, and digital streaming content within Michigan.

This initiative represents a departure from the earlier film incentives approach, which provided a rebate to filmmakers. The updated scheme offers tax credits specific to Michigan, aiming to encourage producers to invest in local businesses and workforce.

Rep. Hoskins emphasized the commitment to ensuring the retention of Michigan vendors and jobs. “As part of the program, beneficiaries are required to employ a certified public accountant (CPA),” he stated in a discussion with WWJ’s Taylor Dietz.

The proposed incentives are designed to benefit not only those in the filmmaking and creative sectors but also local enterprises ranging from catering and hospitality services to construction and electrical workers. Production teams are expected to support local dining establishments, bars, and retail shops as well.

Hoskins remarked that the legislative proposal draws inspiration from similar incentive models in other states, which have successfully retained spending within their borders.

The bills under consideration propose a 30-percent tax credit for film and production companies that incur expenses exceeding $50,000 for commercials and $300,000 for movies and TV shows.

Unlike the state’s previous film tax credits, repealed in 2015 due to inadequate returns on investment, these credits would apply against state tax revenue rather than offering a rebate.

Reintroducing these credits is projected to generate between $6 billion and $8 billion in direct expenditures in Michigan over the first decade of implementation.