LANSING – The Michigan House Commerce Committee took testimony from Senate Majority Leader Randy Richardville on Thursday on his bill which directs how the state would divide $25 million in incentives to film, television and video game projects made in the state.
Under SB 569 , productions would receive a 32 percent credit for Michigan personnel with that phasing down to 27 percent by 2015. Out-of-state personnel costs would get a 27 percent credit, with a reduction to 12 percent by 2015. And any out-of-state below the line costs would receive a 25 percent credit, decreasing to 10 percent by 2015.
Any project using a Michigan studio or post-production facility would receive an additional 3 percent credit.
This year, Michigan dropped its film tax credits in favor of an appropriations process that controls the value of incentives handed out.
Richardville (R-Monroe) said his bill simply makes sure that if the state puts money into a project, it has to be directed in a more responsible way that will benefit workers in the state.
“There is not a dime appropriated with this bill,” Richardville said.
The bill was approved overwhelmingly in the Senate last week.
James McBryde, Michigan Economic Development Corporation vice president of government affairs, said the MEDC is waiting for the Legislature to pass the bill before spending any of the money.
Rep. Wayne Schmidt (R-Traverse City), the committee chair, said he hopes to report the bill following the two-week break when the House comes back briefly before Thanksgiving.
“I think we’ve scaled it to a point where it is good for Michigan,” Schmidt said.
He said there may be several amendments, but he thinks the bill is solid.
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