LANSING – The current Michigan tax credits for the film industry are bringing business to the state, and the cost of those credits will not be known until next year, Michigan Economic Development Corporation officials said in urging the House Commerce Committee to hold off adjusting those credits.
In the first nine weeks of the credit, 30 film productions in the state have been approved and begun at least pre-production work, bringing $233 million into the state, said Lisa Dansock with MEDC.
Those films are estimated to cost state coffers $86 million in credits, but Ms. Dancsok said the exact amount of the credits will not be known until the films complete production and file their taxes in 2009. The estimates are based on the 40 percent credit, but she said not all of the production costs will qualify.
“These funds are going out and into the pockets of Michigan businesses and vendors,” Dancsok said.
“Certainly in my community we’ve seen a pretty tremendous impact,” said committee chair Rep. Andy Meisner (D-Ferndale). “There are jobs and Sigourney Weaver is floating around town.”
In addition to the various work and services around the filming sites, Ms. Dancsok said the new productions are generating development of potentially three new sound studios for Great Lakes Studios: one definitely in Kalamazoo, and potentially one in Ann Arbor and another in West Michigan.
The productions also are filling some empty office and warehouse space, she said.
And Jeff Stern with S3 Entertainment Group in Ferndale said the industry would likely keep much of that space leased, with new productions taking over as earlier projects are completed.
The key for the state now, he said, is to bring in enough filming that the infrastructure to support it is built.
“The industry is really being very helpful in trying to train people here,” Stern said. “As the crew base grows we’ll be able to handle more and more productions simultaneously.”
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