Advocacy News – July 13, 2023
Two bills were introduced in the Michigan Senate this month to restore and modify the state’s former film credit, now referred to as the Multimedia Jobs Act. Changes to the former credit aim are said to focus on the economy and provide more job opportunities in the Great Lakes State.
Senate Bills 438 and 439, sponsored by Sen. Dayna Polehanki (D-Livonia), are also likely to be introduced in the House as a bipartisan package soon. According to the Michigan Film Industry Association (MiFIA) who is spearheading this renewal, the legislation provides “preference to state-based companies who hire Michigan residents and outlines the following:
- Transferrable tax credit. Not a rebate. Tax credits stay in Michigan and benefit Michigan companies.
- A base tax credit starting at 25% for in-state spending with an additional 5% awarded for the inclusion of “filmed in Michigan,” “Pure Michigan,” “Michigan Film & Digital Media Office” and “MIFIA” logo;
- A commitment from production companies to spend at least $50,000 for commercial photography, advertising commercial or project under 20 minutes or at least $300,000 for productions over 20 minutes;
- A 30% tax credit for hiring Michigan residents and 20% for nonresidents;
- A requirement that qualified Michigan vendors provide proof of brick-and-mortar presence, have inventory and full-time employees on staff. Pass-through companies and transactions will not qualify; and
- Accountability requirements for independent verification of approved expenditures.”
Historically, the Michigan Chamber has been opposed to these efforts as they do not create permanent jobs and taxpayer dollars may be better utilized for other long-term infrastructure improvements. However, as this legislation has been modified from previous legislative cycles, we are seeking member feedback on the above package of bills.
Please take a few moments to share your thoughts on the proposed legislation via a short survey.
For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.