Film bill could bring back Hollywood

Michigan has moved one step closer to making a film tax credit program a reality.

State Rep. Robert Wittenberg, a longtime supporter of the area’s film industry, recently introduced House Bills 6504 and 6505 in the state House.

“I’m extremely excited but obviously skeptical,” said Brian Kelly, co- chair of the Michigan Film Industry Association ( MiFIA) Board of Directors. “There will be a lot of people to sell this on.”

The legislation creates a two-tiered tax credit that provides incentives for Michigan-produced commercials as well as film, television and streaming productions.

As a member of the film industry credited for his work in the camera and electrical department on such blockbuster films as “Batman v. Superman,” “Transformers: Age of Extinction” “Scream 4” and the “Ides of March,” Kelly said there is no reason why Michigan should not be competing with other states.

“Why can’t Michigan be competitive in the industry?” he said.

More than 30 states currently offer film incentives and, in turn, receive the jobs, economic boost and related upstream, downstream and peripheral benefits from a multibillion- dollar industry

“This is about Michigan jobs,” Wittenberg said in a statement following the announcement of the two bills. “As we witness the devastation and business losses from the pandemic, we know that attracting an industry that reinvented itself amid the crisis is a smart investment in our state’s economy and its workers. This is a smart first step to rebuilding Michigan.”

As outlined in HBs 6504- 6505, preference is given 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.

• Accountability requirements for independent verification of approved expenditures.

Kelly said a cross- disciplinary team of Michigan film professionals from Macomb, Oakland and Wayne counties worked tirelessly with Wittenberg to come up with the legislation.

In the process – which has taken three years – the group studied four of the country’s most successful programs including those in Illinois, Ohio, Pennsylvania and Georgia.

“We took the best things from all of them but also worked out some of the kinks,” Kelly said.

That includes the problems associated with Michigan’s former film incentive program, which ended in 215, because of the financial burden that it placed on the state, among other things.

“The last package was a rebate system,” Kelly said.