Film industry pushes back on cuts to Michigan tax break

There are currently applications for more than $93 million in tax
credits pending at the Michigan Film Office for 2011, but Stevenson warns that if the tax breaks are cut the state’s burgeoning film talent base may soon be left behind as Hollywood moves on. One production, “The Avengers” has reportedly already pulled out of the state.

“It’s safe to say that a number of our companies may not consider
Michigan in the mix anymore because of the uncertainty as to whether
they would be able ot obtain a portion of the credit,” Stevenson said. “The potential for a mass exodus is real given those parameters,”
Stevenson said.

He pointed out that most producers were lured by the size of
Michigan’s credit since 40 states have film industry incentives in place
and most are competitive, if not quite as generous as the Mitten State.
He also noted that Toronto is close to Detroit and offers a 35 percent tax break as well.

Snyder’s proposal would cap the tax incentives at $25 million for fiscal 2012 and 2013. The budget must still be approved in the state legislature; the
Governor’s office did not respond to a request for comment. Conservatives have argued the state cannot afford the program in the face of a $1.8 billion budget deficit.

But the move has proved unpopular with the more than 5600 state residents who were employed by the film industry in 2010. Plans for a new film studios near Detroit could be jeopardized and more than 1,000 residents packed a recent townhall meeting on the issue, where author Mitch Albom and actor Jeff Daniels were among the vocal critics.

“We will be talking to the governor’s office and legislature, hopefully they will recognize economic benefit and sustain the program,” Stevenson said.

“Michigan is at a tipping point; the state has a tremendous opportunity to continue to see unprecedented growth in TV and movie production particularly by the major companies we represent. We hope that will continue.”