Friday, March 20, 2009

Update from Michigan

The questions of economic impact from production incentives seem to have subsided for now, with most agreeing the programs are a net gain for New Mexico. For a fairly clear and readable study from another state, Michigan State University has just released a study on their even more aggressive rebate program -- including a look at the impact of Tourism and other difficult-to-measure benefits. Michigan's WXYZ has this story:

MI Movie Business Booming
A Michigan State University study has found that the state of Michigan’s law providing tax credits for film production companies that shoot their movies in Michigan is a big-time hit.
The study, conducted by MSU’s Center for Economic Analysis, found that in 2008, 32 film productions were completed, generating more than $65 million in spending and creating more than 2,700 jobs. And this was just in the eight months since the law was enacted in April of 2008.

“It’s amazing how much activity we had in such a short period of time,” said Steven Miller, CEA director and director of the study. “Many of these projects had already established they were going somewhere else, but quickly changed gears and moved to Michigan when they learned of the tax incentives.”

Among other things, the Michigan Film Production Incentive Program provides a tax credit of up to 42 percent of the amount a production company spends while producing a motion picture in Michigan.

The MSU study, conducted for the Michigan Film Office by request of the Michigan Economic Development Corp., found that film production companies spent $65.4 million in Michigan in 2008 -- $25.1 million on direct wages and salaries and $40.3 million on Michigan goods and services...
More at: MI Movie Business Booming

For Complete Report Click Here

No comments: