RICK’S WRONG!

About the Michigan Film Industry Tax Credit

 
 

Snyder May Dim Lights on State's Movie Biz

 

By Mitch Albom

 

If Rick Snyder is elected governor, we can say good-bye to the movie and television business.


He has called the film incentives "dumb" and "a gimmick." He claims they don't pay off and calls for phasing them out -- this during a campaign when candidates are usually evasive.


So it's pretty obvious: If Snyder wins, they're gone. This would be bad for Michigan -- and, I fear, based on some misconceptions.


I was involved in bringing these tax incentives to our state. I helped with their creation, testified before the Legislature, met numerous times with the governor and her staff, and shared -- with other Michigan-connected artists -- our frustrating experiences in convincing studios to make films or TV shows here and employ Michiganders, only to be told the work was going elsewhere -- to states with incentives.


Back then, we advised that the only way to win this business was to jump to the front. For films and TV shows -- mobile operations that can set up fast -- cost is everything. If you offer 40% and someone else offers 35%, all things being close-to-equal, they're coming to you.


The idea worked. Within three years, we jumped from less than $2 million in film and TV activity to more than $600 million to date. Name me another business that grows that fast. Especially in Michigan.

A battle of the studies


Critics of the program -- usually people who will never benefit from it -- say we're not making back enough money. They point to studies that claim a meager return of tax revenue for the dollars put out.


Well, first of all, the idea was never to refill the state's tax coffers. Not at the start. The idea was to create jobs. To launch an industry. To spur building and infrastructure. And to keep young minds and creative talent from fleeing the state.


It has done all of that.


As to the cost? Critics wave studies claiming the money laid out only returns nickels on the dollar. Supporters say for every dollar put in, more than a dollar comes back. How can there be such disparity?


It happens in every state with incentives -- New Mexico, Louisiana, Connecticut, etc. Critics do studies. Supporters do studies. But it is terribly hard to measure the ripple effect of a movie or TV show -- the hotels, rental cars, restaurants or tangential businesses. Jobs that last eight weeks get labeled "temporary," yet people can make enough in those eight weeks to last a year. So is it temporary or full-time pay? It is also near impossible to measure whether someone who was about to flee Michigan stays and pays taxes thanks to the incentives. What check box does that go into?


So it's confusing. But this should be clear. First, we give tax incentives to all kinds of businesses (more than $3.5 billion to more than 500 companies under Gov. Jennifer Granholm, according AnnArbor.com). And second, isn't that partly what our tax money is for? To create jobs, ignite citizens and boost the image of our state?


The best we have right now.


We always said, at the beginning, you must give these incentives five years minimum. Let studios be built. Production houses, too. Let our crew base grow. The more we have talented editors, art designers, directors, etc. the more they will be hired from here and not brought in (because you get a bigger tax break for using Michigan people). And the more infrastructure, the more permanent jobs. Someone has to clean those places, answer phones, keep the books.


And we haven't even mentioned digital gaming -- a business much larger than movies and TV combined -- which is also part of the incentives. We've barely scratched that surface.


After five years, you re-evaluate. Maybe then you've hooked enough business to adjust the rates.


But the worst thing you can do with incentives is what Snyder is doing: talk about killing them. Hollywood is a small world, and no one wants to plan a film -- which can be a yearlong operation -- in a shaky environment. Snyder's possible election already has future productions reconsidering.


So forget phasing these incentives out. The minute Snyder announces that, he might as well kill them outright. No one will build. No one will invest. And OK, if that's what our citizens want, fine. But then what?


Do you think the state will be better off? Do you really envision some new better use of the money by our government? Like what? As I often want to say to these angry critics, so what's your great idea? What new industry that is growing, is tech-savvy and excites young people do you plan on bringing here? And how will you attract it to a Rust Belt, population-dwindling, economically choking state?


And don't say "incentives."


Contact MITCH ALBOM: 313-223-4581 or [email protected]. Catch "The Mitch Albom Show" 5-7 p.m. weekdays on WJR-AM (760).


Read more: Mitch Albom: Snyder may dim lights on state's movie biz | freep.com | Detroit Free Press http://www.freep.com/article/201010170300/COL01/10170481#ixzz12oxURZvk

During the campaign, Rick Snyder said he wants to eliminate the Michigan Film Tax Credit. He said we never should have done it in the first place and it is an inefficient way to spend money. We disagree.


Help us change Governor-elect Snyder’s mind on this important issue for our state. Please sign our petition, tell us your stories or thoughts so we can show him how important this is to our citizens and donate so we can continue our work on this initiative and get ads on the air in the future. Together, let’s change his mind and save this growing and profitable business in Michigan.

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How Does the Michigan Film Industry Tax Credit Affect You?


RECENT COMMENTS:

"We have insured at least a dozen films of various sizes, and parts of more films, not to mention small production companies and production facilities, all inception of the start of the Michigan Film Credit. We have been able to add a person to our staff for this reason and to represent insurance companies who were previously unwilling to come to Michigan. I don't know how to calculate the return to the state on increased employment, or just from enhanced cultural activity, but I know both are there and would increase if we'd support the tax credit long term. I wish Rick was on board with this because I could be a pretty staunch supporter if he was."

"I personally know folks who have MOVED BACK TO MICHIGAN for JOBS in the film industry. Although I'm not a film industry professional, I had the opportunity to work as an extra in a professional feature film - it was such a thrill and learning experience. Let's give this industry a chance to develop and KEEP those Michiganders in the state instead of going back to LA."

“It's putting me to work and a bunch of others."

"We are the ONLY 100% Michigan founded/operated animal trainer/wrangler company for the film/TV industry. Though work is occasional for specialty services such as ours, the income is good. We spend every cent back in Michigan. We are grateful for the incentive."

"I work for a film director from the State of MI, we are pre production of our feature films. I know several individuals from students, film makers (crew and cast) and business owners in the State who benefit from the incentive the whole state does. Mr. Synder needs to remember he works for the people. Film Incentive is a must."

“It's very beneficial to Michigan's long term economy & reputation. Give the film industry time to prosper - the auto industry wasn't a huge overnight success either!”

“I have been a student of film and digital production for 8 years. I was excited to hear that I can get a head start working in the industry right here in my own back yard. This summer I spent my birthday on the set of Detroit 1-8-7...one of 2 times on the set, and spent time on the set of The Double and got to see Martin Sheen there. I love the fact that not only does this benefit film students here in Michigan, but it also helps Michigan to create jobs and helps businesses survive...”

“Having the tax credit here is good for Michigan's creative economy. If we lose it, I predict young people will leave our state in droves and go elsewhere. Because once movie makers have an infrastructure firmly in place, the film industry could totally transform Michigan - with jobs, new business opportunities, people who left and will move back, etc. Plus, we'd be losing money we wouldn't otherwise have had - money that has kept Michigan businesses going, allowed Michigan families to keep their homes, and money that has helped show the rest of the world that our state has so much more to offer than they ever imagined.”

“It has given me work opportunities during these tough times.”

“Getting extra work is a helpful revenue stream for younger students who have to work their way through school.”