Michigan Senate Passes State Motion Picture Film Incentives Package

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In the eleventh hour or Lame Duck session of the MI Senate - forces of good on the production side prevailed and allowed the MI film incentive package to be passed. Now the playing field is leveled a bit - incentives aren't everything but they are a start putting MI back in the game. Here are details of the package:

Come and shoot in Michigan!!!


--Must spend at least $200,000 in Michigan to be eligible

--Graduated scale for credit
   --between $200,000-$1 million production company receives up 12% rebate
   --between $1 million-$5 million production company receives up to 16% rebate
   --between $5 million-$10 million production company receives up to 20% rebate
   --anything over $10 million only receives 20% on first $10 million

--Company must submit application to film office and Treasury; be pre-approved before becoming eligible.
--application must include: estimated costs; type of film; amount of time in Michigan; must commence filming within 90 days of approval

--Treasury and Film Office can allow 4 credits for each tax year.

--$7 million total limit for credits each tax year

--If the Film Office and Treasury agree that the production company has complied with law and their agreement, a post production certificate shall be given to the company.  The company can then submit specified information to Treasury for rebate and credit.

-- If the credit exceeds the tax liability of the company, the excess or the amount of the credit shall be refunded or paid to the company.

--Study by the Film Office must be conducted annually and submitted to House and Senate Finance Chairs

--Commercials and TV series are eligible

-- Companies are not eligible if they owe the state any money, guaranteed loans etc or if owned by a company in default with the state