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Michigan film tax incentive program, benefit or bust?
Posted: 02.21.2011 at 5:13 PM
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Film crews set up to shoot "All's Faire in Love" at Flint's Atwood Stadium September of 2008
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A new report says every dollar spent on making movies in Michigan generates six dollars in economic activity.

But Michigan's film tax incentive program is in danger of being cut by Governor Rick Snyder's budget proposal.

Some are fearful. Others say, it's the right thing to do.

Movies like "All's Faire in Love" shot in Holly and Flint, "Alleged" shot at Crossroads Village in Genesee Township, and "This Must Be the Place" shot in several Huron County, show Hollywood's attraction to Mid-Michigan and the state's generous film tax incentive program.

The program refunds 40% to 42% of qualified expenditures.

"I have been here a year just waiting for a job in Michigan. So there's a lot of people waiting around like me," says Andrew Guenther of Saginaw Township who wants to make moving-making a full time job.

In the meantime, he's a bartender at the Midland Brewing Company.

Guenther has worked for the channel TLC and filled in as an extra in a local movie.

He fears his dreams may not come true if the incentives are cut.

"It painted Michigan in a good light. You could shoot Michigan. It's good advertising for Michigan to have that," says Guenther.

An Ernst & Young study says in 2009 and 2010 the Michigan film tax credit generated six dollars for every dollar spent for a total of $812-million.

However, the Mackinac Center for Public Policy in Midland disputes these claims saying that there's yet to be a study that proves tax incentives for films make a positive economic impact.

Michael LaFaive, the Mackinac Center's Fiscal Policy Director says, "The model treated the program as if the money that was being spent on the state was manna from heaven, that there were no costs associated. That's not an economic reality."

Economist David Zin says each direct movie job cost the State of Michigan $193,000.

"The senate fiscal agency actually reported that no film incentive has generated as much revenues as it has taken from the treasury," says LaFaive.

Losing the incentive program could close down Michigan studios and drive movie-makers away.

In addition to eliminating the film tax incentive program, Governor Snyder wants to cap film credits to $25-million.

However, current commitments would be honored.

Do you think Michigan should keep the film tax incentives?
Do you think Michigan should keep the film tax incentives?

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