wolmerica GRAND RAPIDS, Mich. (WOOD) — Nearly a decade since the state’s film tax credit program shut down, there could soon be more “lights, camera, action” once again in Michigan.
Lawmakers are considering bringing back tax incentives for films and television shows to be filmed in our state. A state House committee recently advanced two bills, HB 4907 and HB 4908, that would give tax credits to production companies.
It’s unclear when the full House would vote on the legislation.
The original program existed from 2008 to 2015, shutting down during former Gov. Rick Snyder’s administration. The idea is that showing off Pure Michigan will boost tourism and local economies.
“We know some tourism has a huge impact,” said Alexander Page, the legislation committee action chair for the Michigan Film Industry Association. “People are still running up the steps in Philadelphia for Rocky. Major League Baseball has a baseball game in Iowa for Field of Dreams. We think we can have those things here.”
Josh Sikkema is a Grand Rapids native and filmmaker who moved to Los Angeles around the time the film incentive program shut down.
“I was kinda forced out there because that’s where the work was,” Sikkema said.
His production company, Black Pigeon Studios, used to be based in Walker until late 2023. Although it’s now based in Los Angeles, Sikkema plans to shoot in Michigan later this year.
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“LA is great, but West Michigan is way better,” Sikkema said. “We have every single shot you could potentially want in a film. We have an amazing bustling city, we have beautiful landscapes, rural, and we have the wonderful lake.”
Under the old program, the state would give production companies a 42% rebate for every dollar they spent. It was essentially a check they could use however and wherever they wanted.
But under the newer legislation, companies would get a transferable tax credit of up to 30% for filming in our state and hiring Michigan workers. Unlike last time, the tax benefit would have to stay in our state.
“We’d make sure the credit stays in Michigan and only benefits Michigan companies,” Page said.
Production companies could receive a 30% tax credit if the finished product includes approved logos including “Pure Michigan” and “Filmed in Michigan.” They would receive a 25% tax credit if those names are not included.
Michigan would join 37 other states in offering film tax credits. It’s a $2 billion program that would last 10 years.
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Known as the Multimedia Jobs Act, the program is not just for movies and TV shows but also for commercials, corporate videos and digital media. There would be a $125 million annual cap on tax credits for the first three years. That would later rise to $200 million between years 4-6 and then again to $275 million for the last four years of the program.
The old program cost the state $500 million, and critics argued the state saw little return on investment. James Hohman, the director of fiscal policy for the Mackinac Center for Public Policy, a right-leaning think tank, says the state lost 87 cents for every dollar it spent on film subsidies. Hohman argues the tax subsidies are too expensive for what the public gets in return.
“We’d be spending $2 billion subsidizing an industry that doesn’t need subsidies,” Hohman said. “That’s a lot of money that could be spent on schools or roads or any other legislative priority.”
Advocates argue this program is different. Since the last one shut down, they say Michigan’s creative talent have moved to other states with more opportunity.
“We’re losing our youth, we have the brain-drain,” Page said. “We’re educating our students not only in filmmaking but in marketing, advertising, all the related fields, and they’re going out of state.”
The Michigan Film Industry Association estimates it would bring $6 to $8 billion worth of direct spending to our state, while the Mackinac Center argues taxpayers won’t see the return on investment.
“Lawmakers should really learn the right lessons,” Hohman said. “The right lesson is that it’s really expensive to do film subsidies, these are temporary jobs, they don’t influence the larger economy.”
Page said the tax incentives don’t just fund high-salary positions like actors and directors — they pay for a huge variety of Michigan workers.
“Caterers, lumberyards, construction, retail, hospitality, there are so many different avenues going into this,” he said.
