Michigan

Michigan lawmaker proposes film incentives to boost state economy, retain talent

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A Michigan state senator wants to bring film incentives back to the state to help retain talent and boost the state’s economy.

The state of Michigan offered film incentives for a few years, but the program was scrapped in 2015.

A new proposal would offer filmmakers a tax credit versus a rebate: a 25% credit for Michigan-based goods and services expenses, and an extra 5% if statements like “Filmed in Michigan” or “Pure Michigan” are included in the film credits.

Critics argue that programs like this do little, if anything, to bolster the local economy. But proponents say Michigan is losing young talent and losing out to neighboring states that offer competitive film incentives.

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Since 1984, Ferndale production company Dark Spark Media has produced more than 1,000 corporate videos. They say business was booming around 2010 when Michigan was still offering film incentives.

“I think it was great when the incentives were here,” said Lisa Smiatacz, producer at Dark Spark Media. “We saw our community as artists and creative people coming together, working together, to lend a hand to these other companies coming in to shoot film.”

Local 4 is no stranger to Hollywood. Back in 2016, “Batman v Superman: Dawn of Justice” was shot in Detroit. Neil deGrasse Tyson filmed a scene here in the Local 4 studio.

“When we’re on location, you’re spending money on hotels, you’re spending money on rental cars, on restaurants to feed the crews — and I mean, you’re talking crews of upwards of 100 people, which is obviously good for the state,” said Rick Yarmy, director of Dark Spark Media.

Critical of film incentives, Michale LaFaive, senior director of fiscal policy for the Mackinac Center, says the state should not revisit offering such incentives.

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“I’ve heard this argument many times, and it’s a tiresome one. What they’re saying is, ‘Look at the asset side of our balance sheet, but ignore the liability side,’” LaFaive said. “That’s not how the real world works. At its base, it is robbing Peter to pay a bunch of filmmaking Pauls.”

Filmmakers argue Michigan is missing out by being one of only 10 states without a film incentive program.

Yarmy said that when Michigan first offered film incentives, there was around a 40% return on their investment in the film. So, if you did a $20 million film, you’re looking at an $8 million return — the producers had $8 million extra dollars to spend on the production that came directly from the state of Michigan.

Yarmy: “It was very lucrative for them.”

Priya Mann: “Is that sustainable though?”

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Yarmy: “Probably not. I kind of always thought it was too bad they didn’t adjust as opposed to [canceling] it.”

A new bill for a film incentive program is being spearheaded by Michigan state Sen. Dayna Polehanki, who covers the western Wayne County district.

”If our motto is to ‘Make it in Michigan’, it makes sense that it applies to the creative industry as well. Many people make good living in other states working on film, television, and commercial productions. It is an exciting industry that can not only diversify our economy but perhaps keep some of our young people in the state as well.”

Michigan State Senator Dayna Polehanki

“It seems silly to me to look at an industry and just say, ‘No, we want to ignore that.’ It is an industry,” Yarmy said. “People don’t look at it as a business because it isn’t a brick-and-mortar business. But it is a money business, and there is money in it.”

Copyright 2023 by WDIV ClickOnDetroit – All rights reserved.

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