Michigan To Attract Hollywood Movie Makers?

Posted by Editor | April 9, 2008 .

There has been no shortage of drama in the State of Michigan lately. But if Jenny “from the block” Granholm has it her way, our State will be handing out big tax breaks to the movie industry. The bill although well thought out, leaves out tax breaks for businesses that really need them. Michigan’s auto industry has declined steadily over the last few years because of competition from foreign auto companies. Other manufacturing industries are also disappearing leaving millions of square feet of industrial space empty. Foreclosures and unemployment are higher in Michigan than any other State.

The bill was signed by the Governor on Monday April 7, 2008. The new bill aims at giving the film and entertainment industry up to 42% refundable credit for production expenses. The hopes of studios and production companies flooding into Michigan have yet to happen but there seems to be a lot of interest in Michigan already since the bill past.

What I find really amazing is that the Governor and State Legislature is willing to give HUGE tax incentives to companies not located in Michigan, has chased big and small businesses out with the SBT/MBT, and raised personal income tax! The circus that is happening in Michigan is an embarrassment and a shame. All businesses should get generous tax cuts and individuals should have their personal income tax rate cut or eliminated.

The only promising thing I can see in the bill is the potential to retrain a lot of displaced auto and trade workers in the State of Michigan. The people who will see the most benefit will be the skilled construction trades and movie trades.

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