Sen. Jansen's film industry legislation sent to House
LANSING - Legislation providing substantial business tax credits for the creators of motion pictures, television, and other interactive media, was approved Wednesday by the Senate, said sponsor Sen. Mark Jansen, R-Gaines Township.
"The passage of this economy stimulating legislation is outstanding news for the entire state," Jansen said. "Michigan is the perfect place to film movies and TV shows - from the natural beauty of our forests to the urban centers of our big cities. I'm glad to see these bills advance toward becoming law."
Senate Bill 1182, sponsored by Jansen, is part of a 16-bill, bipartisan and bicameral package designed to attract more film and television production in the state.
In addition to the 40 percent MBT credit, the proposed measures also would make creators eligible for a 2 percent bonus if production occurs in a "core community." Awarded by the Michigan Film Office, the credits have no sunset and there is no limit to the number of credits granted per project.
Eligibility requirements for the MBT credit include:
* Work must begin within 90 days of pre-production certificate issuance;
* Spending must equal at least $50,000 in total costs on the project; and
* The final product must be made available in two or more states.
Jansen's bill permits a local unit of government to authorize the use of its property to filmmakers free of charge. The proposal encourages local governments to cooperate with the Michigan Film Office by providing it with information about potential film locations.
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 others. A university study suggests that a dollar in incentives brings $14.30 back into the economy.
"This is just the shot in the arm that our economy so desperately needs," Jansen said. "This legislative package will diversify our economy and pump money into local businesses."
SB 1182 will now go to the House of Representatives for consideration.
Posted: Wednesday, March 12, 2008
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