Richardville Aims For More Effective Film Incentive

Senate Majority Leader Randy Richardville (R-Monroe) introduced legislation Wednesday which would retain the tax reimbursement for film production and personnel costs through 2015, starting with a 27 percent reimbursement for production costs and 30 percent for personnel costs, with amounts declining over that time.

Included in the bill is a bonus granted to Michigan-owned studios. The state currently provides grants from a $25 million pool to encourage the growth of Michigan’s film industry. Tax credits would amount to an additional $75 million, an amount Richardville finds acceptable, but cautioned that the fund’s performance should be monitored closely.

The decline from last year’s $111.8 million appropriation has been criticized by film officials who argue that it is not enough money to remain competitive with other states.

During an appearance on Michigan Public Radio Network Sen. Richardville said "I think we'd make a mistake to pull the plug completely, we can't throw the baby out with the bathwater." Richardville also stated that the incentive needs to target production companies and studios in Michigan, stating "We're not going to pay Hollywood actors millions of dollars to come here, wave to some people and leave."

posted by PAA Online , Friday, July 15, 2011 10:58 AM
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