Sen. Richardville's film legislation sent to the House
LANSING- The Michigan Senate approved legislation Wednesday that will help reel the film industry into Michigan, provide a boost to the state's economy and create more jobs, said Sen. Randy Richardville, sponsor of the legislation.
"I'm glad to see that these bills are moving closer to becoming state law," said Richardville, R-Monroe. "The legislation has support from both sides of the aisle. I hope that it will take effect soon as the film industry could bring a substantial amount of money to Michigan."
The bipartisan package will use several incentives to entice filmmakers to produce more movies in Michigan. The incentives will also apply to television shows, commercials, documentaries, mini-series, video games, Internet programming, and music videos.
Senate Bill 1172, sponsored by Richardville, will allow taxpayers to deduct gains from investments in production companies. To qualify for the deduction, the gain must be reinvested in another company, and that company must produce a new film within two years.
"Michigan is taking a more assertive approach in encouraging filmmakers to shoot movies and other productions in our state," Richardville said. "We already have a variety of settings that make Michigan a perfect place, and we could soon have the most attractive package of tax incentives in the nation."
According to industry standards, between 50-60 percent of a film's production budget is spent on location. Filmmakers depend heavily on local services, such as hotels, restaurants, grocery stores, gas stations, dry cleaners, office supply stores, lumber yards, and so forth. A study by Virginia Commonwealth University suggests that the return for every dollar given in incentives is $14.30 back into the economy.
Several filmmakers, actors and individuals associated with the industry, including Jeff Daniels and Detroit Free Press columnist Mitch Albom, testified in support of the package when it was before the Senate Commerce and Tourism Committee.
The bill will now advance to the House for consideration.
Editor's note: A photograph of Sen. Richardville with Mitch Albom is available on the Senate Majority Photowire, located at: http://www.MISenateGOP.com/senators/photowire.asp?District=17.
Posted: Thursday, March 13, 2008
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