LANSING – Michigan’s film incentive program could have new life under legislation introduced Wednesday in the Senate by Majority Leader Randy Richardville.

Earlier this year, the Legislature and Governor Rick Snyder eliminated the state’s generous film tax credit program, which provided a 42 percent refundable credit toward a film production’s Michigan Business Tax liability, in favor of a grant program totaling $25 million. That’s a major scaling back from the $111.8 million net cost to the state the Senate Fiscal Agency estimated the old credit will have on the 2010-11 fiscal year.

Film industry advocates have howled at the state wrecking its nascent film industry so soon after launching the effort to attract it in 2008. Now Richardville (R-Monroe) said he is hoping his bill (SB 569 ) will prove to be a more targeted, sensible approach than the tax credit.

“I hope that it reframes the film debate from a tax credit program to a financial incentive program,” he said. “The old program gave away money and it didn’t direct it very well into the activities that would help Michigan’s economy the best. Therefore, we wasted some money.”

Under Richardville’s bill, film production could receive a 27 percent reimbursement for direct production expenditures, 30 percent for Michigan personnel expenditures until 2015 when it declines to 25 percent and 27 percent for other personnel expenditures until 2015 when it declines to 12 percent. There also would be a 2-5 percent bonus for direct production expenditures and Michigan personnel expenditures at Michigan-owned studios.

These moves are part of Richardville’s effort to target the incentives toward productions that favor state workers and studios.

It would still be incumbent on the Legislature and governor to fund money for the program annually. Besides the $25 million appropriated for the new grant program for the 2011-12 fiscal year, another $75 million was authorized under the tax credit. Richardville said he thinks funding of $100 million would make sense going forward, but the performance of such incentives would have to be evaluated annually.

“I don’t want to pull the rug out from the industry,” he said.

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