Page said that the new proposal, known as the Multimedia Jobs Act, is expected to be introduced soon in the Michigan legislature. It has been crafted to override the shortcomings of the film incentives that were in effect from 2008 to 2012 and were criticized as overly generous. The proposal is intended to take advantage of the abundant knowledge of the 39 other states that now sponsor tax credits for film production, which is a form of manufacturing in the eyes of the U.S. business classification system. Page shared some of the experiences of other states, including Massachusetts and Georgia, and discussed the legislative outlook for the proposal.
The proposal gives preference to state-based companies who hire Michigan residents. Other specifics of the legislation include:
A base tax credit starting at 25% for in-state spending with an additional 5% awarded 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 over 20 minutes;
A 30% tax credit for hiring Michigan residents and 20% for nonresidents;
A requirement that qualified Michigan vendors provide proof of brick-and-mortar presence, have inventory and full-time employees on staff. Pass-through companies and transactions will not qualify; and
Accountability requirements for independent verification of approved expenditures.
Unlike the former Michigan incentive, this proposal includes not only movies but also television, commercials and corporate videos. The new incentives would take the form of transferable state tax credits rather than rebates.
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