Tagged: film industry

A new film-incentives program would give money to film and video game companies under a proposal approved by the state Senate.

Republicans have been looking for a new way to attract film companies to Michigan.

A tax-credit program created by Governor Jennifer Granholm was largely unpopular with the GOP.

Republican state Senator Mike Kowall says he a grant-based system for funding the film industry could still attract big-name productions to Michigan.  

He says the amount of money the state appropriates for the film industry may become a contentious issue down the road. But he says it’s important to get a system in place now that will keep the film industry interested in Michigan.

 “When you go down into these studios and you see not only how many people are there but the caliber and they’re from Michigan – they’re Michigan kids, they’re people that maybe moved to California and had the opportunity to move back and they grabbed it, said Kowall.

Senate Majority Leader Randy Richardville has said he would like to see as much as $100 million budgeted for the film incentives program.

If the Legislature approves the new incentive program, lawmakers will still have to decide how much money to budget for the film industry. The state Senate is expected to vote on the film-incentive program proposal tomorrow.

Michigan’s film industry will take center stage before a state Senate panel tomorrow.

The Economic Development Committee is expected to discuss a proposed new funding structure for rewarding film companies that want to shoot in Michigan.

Senate Majority Leader Randy Richardville said a generous film tax-incentive program under Governor Jennifer Granholm’s administration was not sustainable, but he said it helped initially attract the movie industry.

“We got a lot of attention by bringing Hollywood here, so to speak, now we’re going to spend a lot less on famous actors and big names and more on providing credit if you’re shooting here in Michigan, [and] if you have a Michigan studio,” said Richardville.

Richardville said film companies want to work in Michigan, but he said many feel the state forced them out when it scaled back its once-generous incentive program.

“You talk to producers, you talk to directors, you talk to movie makers that have been all around the country – they really like Michigan, they’re excited to come back to Michigan. And even the film that we lost recently, I heard a lot from the companies involved that they were very disappointed because those up close wanted to stay in Michigan and film Iron Man 3,” said Richardville.

Governor Snyder approved a less aggressive, $25 million grant program for film projects, but the state Film Office stopped taking applications earlier this month, saying there were no rules for projects to qualify.

The Richardville legislation would put those rules in place.

Update 4:18 p.m.

Carrie Jones, director of the Michigan Film Office posted a letter on their website explaining their decision to suspend film incentive applications.

The letter explains that they are waiting for direction from Michigan legislators. She says Senate Bill 569 lays out the parameters of the new $25 million incentive program, but it has not been acted on. From her letter:

Recognizing there are many projects currently planning to submit applications on October 1, we feel this is the best course of action for several reasons – the primary of which are ensuring certainty and consistency within the Michigan film incentive program. With everything in SB 569 subject to change at this stage in the process, we simply do not yet have answers to many of the most basic questions projects have when applying for the film incentives. We also want to ensure all projects approved under the new funding are approved using the same set of criteria regardless of when in the fiscal year they apply.

Jones writes that she knows the legislature plans to take up SB 569, but she does not know when. SB 569 was referred to the Senate Committee on Economic Development last July.

3:56 p.m.

The Michigan Film Office says it is not taking any more applications for movie incentives because there are no guidelines for the program.

The director of the film office released a statement today saying all applications are on hold, and will likely have to be re-submitted after the Legislature passes a new law outlining new incentive guidelines.

Governor Rick Snyder's administration is backing away from Michigan's old program of generous tax breaks for filmmakers. The state has set aside $25 million to support filmmaking in the fiscal year that begins tomorrow (Saturday, October 1), but film office director Carrie Jones says she needs guidance on how that money is to be spent.

Michigan’s attorney general is considering an appeal in a case against two men involved in a project to convert an old GM plant located in Walker into a film studio.

Joe Peters and Jack Buchanan Jr. tried to get $10 million in state film incentives for a big studio project. But the film office rejected their application and the deal fell through. They got no taxpayer money.

This weekend “30 Minutes or Less” comes out in theaters. I’ve heard a lot of people talking about it in Grand Rapids this week; a few are hosting movie parties. The pizza place where the main character works in the film, is giving people $5 off their order if they present a movie stub. I admit, I spent some time at work today playing the little internet pizza delivery game on the movie's page.

The old film incentives were scrapped in the tax overhaul approved by the Michigan legislature and the Governor.

They said the old film incentives, which gave production companies a 42% credit on total expenses in Michigan, was too costly ($115 million was spent last year, according to the Mackinac Center for Public Policy).

In it's place, a $25 million film incentive program for Michigan's next fiscal year (which starts October 1).

Now, Senate Majority Leader Randy Richardville says he wants to improve the film incentives.

MPRN's Rick Plua filed this report:

Richardville says his new proposal would focus financial support in activities that reward spending on Michigan products, services, and workers.

He says investors have put money into expensive production facilities, and workers have learned new skills in the belief that incentives would attract more film business to the state.

 “I think the strength of that workforce, the strength of the investments we have in Michigan will cause us to win contracts in competitive situations versus other states. Once we’re done with that, then let’s analyze it to see what we can afford versus what the industry needs to sustain itself here in Michigan.”

Governor Rick Snyder’s office says he would like to see how Michigan’s new incentive program is working before making changes.

Governor Rick Snyder has signed legislation allowing more flexibility for Michigan's movie and film incentive program.

The legislation that Snyder announced signing Tuesday gives the Michigan Film Office the ability to negotiate the size of the credits it offers to movie, television and video game producers.

The incentives offered can be lower than the 42 percent subsidy now provided automatically when a project is approved for credits.

Supporters of the change say the current system may provide more taxpayer support for projects than necessary.

The state's movie and film credit program will be capped at $25 million in the fiscal year that starts in October. The state's current incentive program is not capped and offers some of the most generous credits in the nation.

People who work in Michigan’s film industry hope efforts to boost the incentives for TV, movie, and video productions are successful.

They say the recent $25 million cap on the incentives makes them too small to attract big productions.

Chris Baum helps market the state to Hollywood with Michigan Film First and Film Detroit.

Baum says the state does not have to be as generous as it has been in the past to movie-makers, but it still has to put more money into incentives if it’s going to build a movie industry here:

"It’s not brain surgery. We've invited an industry here. We've promised them that we wanted them here," said Baum. "We need to continue to giving them conditions that allow themselves to establish themselves here and then down the road, they'll be so comfortable coming to Michigan that we'll be able to pull back on the the incentives further."

Baum says Michigan needs to have at least $100 million available for incentives if it’s going to attract the big budget movies that generate the most economic activity.

State Senate Majority Leader Randy Richardville is expected to unveil a plan this week to boost the state’s film incentives.

Governor Rick Snyder dramatically scaled back the incentives saying they offered a poor return to taxpayers.

It seems all but certain now that the film tax credit is dead. Governor Rick Snyder came to office saying he had a dim view of it, and that he was against the state trying to pick winners and losers.

That view does make some sense. My guess is that most of the major recent new industries, from camera phones to  Google,  wouldn’t have been immediately appreciated by governments.