Legislature may change film tax credits

LANSING, Mich. (WOOD) - The film tax incentives developed during the Granholm administration have been credited for the growth of the Michigan film industry. But those credits have been dramatically changed since Gov. Rick Snyder took office.

As part of his economic incentive plan and in an effort to balance the states budget, Snyder limited the total tax dollar contribution for this fiscal year to $25 million. That is far less than has been handed out in tax credits in years past.

Snyder also wants the money to be distributed as an appropriation rather than a tax credit.

These grants could be used for things including hiring of Michigan residents to work on film projects.

The criteria for getting the credits would would also include consideration of the impact the movie or television program might have on the state economy. For example, the state would consider if the project move elsewhere if the incentives were not granted, if it would employ people from here in the state, and even if it would help promote Michigan tourism.

A bill that would set the parameters for the $25 in tax crdits is currently in the state House. The Senate has already passed the bill, but it was amended in the House committee, so if the House passes the bill, it will need to go back to the Senate.