House Bill Extends Film Incentives to September 2021

Warner Bros. “Gran Torino” was one of the first blockbusters filmed in Michigan under the state’s film incentive program. Pictured are Ahney Her as Sue and Clint Eastwood as Walt Kowalski in Warner Bros. (Warner Bros. photo)

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Film incentives that brought blockbusters like Clint Eastwood’s “Gran Torino,” “Batman v. Superman: Dawn of Justice” and smaller film and television projects to Michigan may get more life.

On a 73-37 vote Thursday, the Michigan House of Representatives approved a bill that would extend the state’s Film and Digital Media Incentive program, currently set to expire in 2017, through September 2021.

The legislation lowers the state tax rebate to 25 percent from as high as 32 percent for in-state production costs, The Detroit News reports.

The Senate approved the extension in October. Because the House version makes changes, it will go back to that chamber for another vote.

Senate Majority Leader Randy Richardville, R-Monroe told The Detroit News he will support the changes made in the House version of the bill.

“Seven more years – are you kidding me?” Richardville, the chief cheerleader behind the extension, said. “Look how much it’s evolved since we started.”

When the program first took effect, tax rebates as high as 42 percent were offered, causing a backlash by taxpayers. The Legislature has since tweaked the program, and rebates generally are around 25 percent at a cost to the state of $50 million.

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Gov. Rick Snyder has suggested the annual limit be cut in half to $25 million, to fall in line with estimates that show the state gets 28 cents in tax revenue for every dollar in tax subsidies.

State Rep. Tom McMillin, R-Rochester Hills, was among those voting against the measure in the House, the Detroit Free Press reports.

“These film subsidies are the worst example of corporate welfare,” McMillin said. “For this one, we’re sending a large amount of money out of state.”