State-by-state production incentives
Michigan
| Michigan | |
| Incentive Type | Refundable tax credit |
| Incentives Highlights | 32% tax credit on local crew and resident ATL; 27% on in-state services and materials; 25% on out-of- state crew and 27% non-resident ATL Plus a 5% bump on direct production expense and personnel for using qualified Michigan facility/stages, or 2% at any facility. |
| Eligible Projects | Films, television, pilots, series and digital media |
| Minimum Spend | $100,000 |
| Production Cap or Annual Cap | $25M annual grant. $2M per hire cap. Michigan withholding tax of 4.35% required on all loan-outs. Resident producer fees are capped at 10% of direct expenditures and non-resident producers are capped at 5% of direct expenditures. |
| Application/Reporting Requirements | Productions must be pre-certified by the state pursuant to grant guidelines and start within 90 days of receipt of approval agreement. |
| Loan-Out Reg Required? | No |
| CPA Audit? | Yes |
Michigan Film Office
Carrie Jones, Director
jonesc@michigan.org
t: (800) 477-3456
t: (517) 373-0638
f: (517) 241-2930
www.michiganfilmoffice.org
Although Michigan’s Governor made $25 million available to their Film Incentives Program for the 2011-2012 fiscal year (which began October 1, 2011), the new regulations for the program have not yet been approved. Consequently, new applications will not be accepted until the framework for the program has been set by the Legislature. Applications currently pending for the remaining 2011 funds will be reviewed under existing guidelines, but applications will need to be re-submitted for fiscal year 2012 funds.
Legislation for the new regulations is now being considered by the Michigan Senate and must then go to the Michigan House of Representatives for consideration. The proposed regulations would drop the qualified personnel expenditures (i.e., Michigan residents) to 30% until December 31, 2014, and then 25%. Non-resident personnel expenditures would be 27% until 12/31/2012, then 22% until 12/31/2013, then 17% until 12/31/14, and 12% thereafter. Direct production expenses would be 27%. An additional 5% would be awarded for direct production expenses and qualified personnel expenses at a qualified facility, or 2% at any facility. Payments and compensation for all resident producers would not exceed 10% of the direct production expenditures and resident personnel expenditures, or 5% for non-resident producers.
An animated five second logo would be required to be included to qualify for the award. A fee of .2% of the funding request, to a maximum of $5,000, would be required with the application.
All applications for film incentives receive a thorough review by a Michigan Economic Development Corporation (MEDC) committee comprised of the Senior Vice President of Marketing and Communications, the Senior Vice President of Policy, the Vice President of Business Development and the Director of the Michigan Film Office.
Preference is given to projects that best meet the following criteria:
- The production is financially viable.
- Utilization of existing infrastructure (studios, post-production facilities, film labs, etc.).
- The number and wage levels of direct jobs for Michigan residents created by a production.
- Ability to show Michigan in a positive light and promote the state as a tourist destination.
- Magnitude of estimated expenditures in Michigan.
At this point, all parts of the proposed legislation remain subject to change during the legislative process.