by Gongwer News Service
March 14, 2008

In what has been one of the largest shows of bipartisan cooperation and swiftness of this legislature yet, the Senate and House followed up on their pledge to try to make Michigan the Mecca of filmmaking. Both chambers this week nearly unanimously passed a 32-bill film package that lawmakers say will bring a much-needed immediate economic push to the state.

The bills were split into two identical 16-bill packages that offer tax incentives, often described by policy makers as “competitive” and “aggressive,” that lawmakers hope will make Michigan one of the most attractive states in the country in which to film television spots, documentaries, movies, commercials, video games and other entertainment media.

With advocates saying filmmakers give supreme attention to the bottom line, Sen. Jason Allen (R-Traverse City) says that the new credits put the state on par with New Mexico, which brought in the new Sony sound stages after it passed credits nearly identical to Michigan’s package.

Rep. Andy Meisner (D-Ferndale) said this week that “production companies are chomping at the bit to get into our state and start filming,” promising that the legislature’s urgency would pay off with jobs in time for spring and summer movie making. He said Michigan got the film industry’s attention when it introduced the package in late February, and now all lawmakers have to do “is seal the deal.”

Whether the package will be the economic savior that lawmakers and Governor Jennifer Granholm have promised is still yet to be seen.

Many filmmakers, like Michigan natives Jeff Daniels and Mike Binder, have assured leaders that if the price is right, they will come, with Mr. Binder once telling a newspaper, “if I were ruler of the world, I’d be making my movies in Detroit.”

Still, movie executives have conceded, no matter how cheap it is to make a film in Michigan, the state still can’t set the scene for a desert epic or mimic California’s palm-tree-lined streets. What it does offer, on the other hand, are seasons throughout the year.

In exchange for refundable credits of up to 40 percent if they employ Michigan workers and 30 percent for non-Michigan workers, production companies may be willing to compromise on the sand and surf.

A $20-million limit applies to credits for investments in facilities, but there is no limit or sunset on the credits for employee costs.

The House sent the bills on to the Senate unanimously on Wednesday with no mention of the refundable credits.

To be sure, there was a contrarian, and in this case it was Sen. Nancy Cassis (R-Novi) who held up the Senate’s vote on SB 1168 Wednesday. She said small business owners who have seen their taxes skyrocket would unfairly shoulder the 30-percent to 40-percent refundable tax credits promised to film companies.

She described refundable credits as “categorically unfair” and attempted to strike them from the package, but she was soundly outnumbered in that gambit and voted against the core bill.

With such sweeping support from the same people who bitterly fought last year over the replacement for the Single Business Tax, it seems lawmakers — who have pledged to give a final pass to the bills before each chamber goes on break — are hinging their hopes on the record of a state such as Connecticut, which may have a limited niche but has still roped in filmmakers since it upped its incentives.

A LOOK AHEAD: With the House prepared to take leave for Spring Break after next week, Majority Floor Leader Steve Tobocman (D-Detroit) gave notice to lawmakers on Thursday that they could be working overtime to get some important legislation passed.

While no one expects all-nighters similar to last year, the House probably won’t be keeping bankers’ hours while it works to push through outstanding bills.

Some possible issues besides the film incentives package that may see House action are: the renewable energy package, which still sits in committee; the water withdrawal bills, pending on the House floor; the three-bill package to spend more on promoting Michigan as a tourist destination; and passage of some budget bills.

The House on Thursday finished up its votes for the “Save the Dream” mortgage rescue legislation, which took up much of the body’s energy for the last two weeks.

For nearly 50 years in Michigan, Gongwer News Service has provided independent, comprehensive, accurate and timely coverage of issues in and around Michigan’s government and political systems. For subscription information, including a free trial, visit Gongwer online.