LANSING – As it ground its way through a marathon session to close a titanic budget deficit, California’s Legislature passed that state’s first film production credit in an effort to lure production back to the state known for movies. But an official with Michigan’s Film Office said the tax break as well as other production costs in Michigan mean the Wolverine State will still whip the Golden Bear State as a cost bargain.

Just three days after the California Legislature acted to create the credit, Tony Wenson, chief operating officer of the Michigan film office, said, “I got three calls from studios today. So, it doesn’t seem at this juncture to be affecting us much.”

California’s Governor Arnold Schwarzenegger, a movie star before his election, had been pushing for several years to get a credit enacted. While lawmakers in Sacramento focused on proposals to eliminate a potential $42 billion deficit, they enacted a tax credit that could be as much as 25 percent to television shows that return production to California. Small film companies could also be eligible for the credits.

The state proposal also caps the credit’s worth at $500 million over five years.

According to the Los Angeles Times, lawmakers felt moved to act when producers for the hit ABC television show “Ugly Betty” announced they were moving filming from Los Angeles to New York because it was more cost effective.

Film executives and those working for supplier firms to the industry were glad for the legislative action, though they were concerned the proposal was tepid compared to what Michigan and other states offer.

In Michigan, producers can get credits of up to 42 percent of production costs in the state.

Michigan’s credit has been controversial, with some officials saying it should be capped to prevent too great a revenue loss during the recession.

But the state saw a massive boost in film production during 2008, which included the critically acclaimed Clint Eastwood film “Gran Torino,” and last month the state announced several major developments in studio development.

Aside from the tax credit, Michigan is a better bargain for producers over California for other reasons, Wenson said. The permit process is easier in Michigan, and labor and other costs are much lower than comparable costs in California, he said.

In addition, the state is seeing the skilled crew base, as well as studio infrastructure, grow, which will also help in attracting productions as studio executives will know Michigan has the personnel and production facilities needed to complete films, Wenson said.

“We are still a better value” than California, Wenson said.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

a>>