On Tuesday, bicameral, bipartisan legislation investing in Michigan’s workers and economy was introduced in the state Legislature.
According to the Michigan Film Industry Association, the legislation creates a two-tier tax credit that provides incentives for Michigan-produced advertising, film, television and streaming productions.
They say the legislation comes at a time when “More than 39 states are providing movie incentives and, in turn, receiving the jobs, economic stimulus, and related upstream, downstream, and peripheral benefits of a multi-billion dollar industry. of dollars”.
The bills were introduced by Senators Adam Hollier, D- Detroit and Wayne Schmidt, R- Traverse City, and Reps. Kyra Bolden, D- Southfield and Jack O’Malley, R- Lake Ann, to create jobs and retain Michigan talent. .
The initiative, according to the Michigan Film Industry Association, positions Michigan as an “attractive location for movies, commercials and the growing need for streaming content.”
“It’s about jobs in Michigan,” said Sen. Hollier. “As we witness the devastation and business loss from the pandemic, we know that attracting an industry that has reinvented itself amid the crisis is a wise investment in our state’s economy and its workers.”
“Bringing the film industry back to Michigan will create more jobs and boost Michigan’s economy,” Rep. Bolden said. “Michigans will be proud when films about icons like Aretha Franklin and Motown can be made right here in Detroit. »
The legislation gives preference to Michigan-based companies that hire Michiganders.
Other specifics of the legislation include the following:
- A basic tax credit starting at 25% for in-state spending, with an additional 5% granted for the inclusion of a “filmed in Michigan” logo;
- A commitment from production companies to spend at least $50,000 for a single commercial campaign or project under 20 minutes or at least $300,000 for productions longer than 20 minutes;
- A tax credit of 30% for hiring Michigan residents and 20% for non-residents;
- A requirement that qualified Michigan suppliers provide proof of physical presence, have inventory and full-time employees. Intermediary companies and transactions will not be
to qualify; - Accountability requirements for independent verification of approved expenditures.
“The incentives will provide direct economic benefits to Michigan communities,” said Senator Schmidt. “Many states can attest to the fact that film incentives spur additional investment and create jobs and training programs, boost local businesses, and retain talent.”
“Film production is a manufacturing industry that depends on labor and a range of supporting goods and services to survive,” Rep. O’Malley said. “This well-designed and competitive film incentive program will attract new industry opportunities to our state and support Michigan’s talent base and workforce.”
Senate bills SB 862-863 now go to the Senate Committee on Economic Development and Small Business, while bills HB 5724-5725 go to the House Commerce and Tourism Committee.
