Although Michigan’s film incentives brought $120 million to the state and put some $60 million in the bank accounts of Michigan workers, state lawmakers say the payoff isn’t big enough. some lawmakers propose a cap on the incentives; others say no.
According to excerpts from the story:
The Michigan government's strategy to lure movie productions here with the highest incentives of all the states has worked. But critics of the incentives have said they will try again to put a cap on the total amount of money available to movie producers each year in Michigan.
The new laws signed by Gov. Jennifer Granholm on April 7, 2008, provide a 40 percent refundable tax credit for movie production costs spent in Michigan, or 42 percent if filmed in one of Michigan's 103 core communities. Production companies have to file a Michigan Business Tax return in order to qualify for the credit. The credit is applied to any MBT owed, and the amount above and beyond the tax liability can then be paid directly to the movie makers.
"I personally believe we have to put some kind of cap on it, somewhere in the $50 (million) to $100 million range, so we know what it's going to cost us in the next budget cycle," said Sen. Mark C. Jansen, R-Gaines Township.
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