Written by David Lewis on Feb 16, 2007. Posted in Incentive News

Michigan - Huizenga Film Bill Becomes Law

Legislation to increase production in the state of Michigan has been signed into law, announced state Rep. Bill Huizenga.

Public Act 657, formerly House Bill 5204, allows Michigan to join several other states that have significant tax benefits for filming within their borders. Prior to this legislation Michigan had few incentives to encourage movies to do their principal photography in the state.

"Michigan has a lot to offer in terms of talent, location and natural enviroment, all strong assets to the film industry - yet it was not a top location for filming due in part to competition from other states with better incentives", said Huizenga, "This is a huge step for our economy as we give filmmakers the cue that Michigan is ready for full-feature films, commercials and TV series. I am very pleased the governor has signed this legislation that diversifies Michigan's business enviroment and moves the state toward the forefront of the film industry."

To qualify for the tax credits a film company must: Spend at least $200,000 in Michigan. Submit an application to the Michigan Film Office and state treasury for pre-approval of credits. Not owe the state any money, guaranteed loans or be in default with the state.

The new law includes a graduated scale for credits depending on how much a company spends in Michigan. Between $200,000 and $1 million, a companyreceives a 12% rebate; between $1 million and $5 million, a 16% rebate; between $5 million and $10 million, a 20% rebate; and anything over $10 million a is a 20% credit on the first $10 million spent. The Department of Treasury and Film Office can offer up to $7 million in credits per tax year. The bill is sunset after four years and requires the Michigan Film Office to issue annual reports to the Legislature on film production in the state.