Michigan's 40% Tax Incentive! crazy...

that article says alot, but basically last year michigan had 8 features... and i guess since this new bill was announced, the film commission received 86 anticipating projects.

the state is also giving tax breaks for people investing in new studios being built.

as I'm sure you know, the american auto industry is in the dumps, and so michigan's economy is coming close to dead, so that'd why they made such an aggressive incentive program.
 
NOMADIC said:
well, looks like I'll be moving back to michigan in the next few years, haha. That is just crazy. Shoot a 100k film, get 40k back.... crazy.

http://detnews.com/apps/pbcs.dll/article?AID=/20080407/OPINION01/804070331


...so any old rich people that want to invest in some sound stages, talk to me. haha. just kidding, but really...
Click to expand...

The way I read this story is there will be a 40% tax exemption. In other words, if the tax is 8%, on 100k that would be 8k. With this they would only tax you on 60% or 60k (as if any tax were ok). This would make the tax you pay 4800, which would save you 3200.
 
Well the economy here has been pretty crappy for a while... the problems with the Big 3 had a trickle effect on the local economy. This is an attempt to get some money back into the state.

Here is the info, right from the source: Michigan Film Office Site
 
Ohio is trying to do something similar. We just forumlated a new Film Commission last year, so it may be a while. But, from what I know, these tax incentives are VERY real!
 
Okay, so I just picked up the phone and called them. Just got off the phone with Janet Lockwood, Director of the Michigan Film Office.

It's the real deal. You go spend a hundred thousand dollars in Michigan making a film, and they'll write you a check for $40,000 within 30 to 90 days.

Daaaaaang.

Now, you do have to comply with an audit, meaning that you have to show receipts to their satisfaction to show what was actually spent in Michigan, but expenditures for cast, crew, housing, equipment rentals, all that stuff -- it all qualifies. And, if you import your own crew, you don't get the full 40%, you get 30%.

And, if you film in one of the 103 designated communities across the state, you get an additional 2%.

So a $30,000 budget can become $50,000. Basically, whatever budget you could raise, becomes 67% larger if you just shoot in Michigan instead. Every dollar you have to spend is worth $1.67 in Michigan right now.

She says there is one big restriction, which is that individual crew or cast salaries can't exceed $2,000,000 per person. Er, no problem there... :)

I said "what's the cap?" She said "there is no cap. Film as much as you want, as frequently as you want, and we'll keep writing checks."

So, yeah. Film in Michigan.
 
Last edited:
TheMacB said:
wow. how does this compare to the incentives in other states?
Click to expand...

MA - 20%
CT - 30%
LA - 25% (the state, not city...duhhhh)
NC - 15%

And California ... 0%

they all have different rules, but thats about what it comes around to.
 
NOMADIC said:
MA - 20%
CT - 30%
LA - 25% (the state, not city...duhhhh)
NC - 15%

And California ... 0%

they all have different rules, but thats about what it comes around to.
Click to expand...

Massachusetts is 25% for production expense and 25% for payroll if you meet the requirements. They lowered the threshold to $50k total production budget and there is also a sales tax exemption. I has been a great success and you can't swing a dead cat these days without hitting a major production in town, I know of 3 major studio films being shot at this moment in Boston.

For taxable years beginning on or after January 1, 2006 and before January 1, 2023, Massachusetts allows two credits for motion picture production companies who meet certain qualifications requirements. Production companies who incur at least $50,000 of production costs in the Commonwealth are eligible for income and corporate excise tax credits equal to 25 percent of the total Massachusetts payroll for the production, excluding salaries of $ 1 million and higher. In addition, production companies whose Massachusetts production expenses exceed 50 percent of the total production cost receive an income and corporate excise tax credit of 25 percent of the total Massachusetts production expense.

Production companies who expend over $50,000 in Massachusetts production costs during a consecutive twelve-month period are eligible for a sales tax exemption.


 
Last edited:
It's the real deal!

It's the real deal!

Howdy all!

Michigan film incentives are the REAL deal. The very best in the nation and what Mr. Green discusses is right on.

Something else that should be mentioned is that the minimum ceiling for a production starts at $50,000, and we have plenty of opportunity around here for the adventurous filmmaker to boot.

See you all soon, right?

Peace!

AEG
 
We are actually (if all goes well) begin filming in Detroit late summer. I've spoken to Janet on numerous occasions for permits and of course the tax break. All is real! I'm hoping to build the right crew.
 
I wonder if there are companies that will buy your incentive up front. So you show them a budget for $100K and knowing you will get $40K back, you sell that incentive to the company to get say $30K up front and then they collect on the back end.

Or something like that :)
 
You must log in or register to reply here.
Back
Top