If you’ve been in Michigan for a while, you may remember when the state launched a pretty big effort to have more movies, TV shows and commercials filmed here.
Projects got big tax breaks and in return the state hoped it could get a lot of jobs and new industry.
It didn’t work.
A new effort is being pushed to relaunch that program, with lessons learned from the failures of the past in mind.
“I am very excited to be here with all of you, as well as Representative Roth this morning to talk about our bills, 4907 and 4908, which collectively would create the Multimedia JOBS Act: a new economic incentive for the film and other multimedia projects here in Michigan,” said State Rep. Jason Hoskins.
If that sounds familiar, then chances are you remember 2008.
“So, you might be saying, ‘Have we played this game before?”… And it’s true that many years ago, Michigan tried a film… program and it didn’t really go that well,” Rep. Hoskins said.
By many accounts it did not.
Govenor Rick Snyder mothballed it in 2015.
“Michigan spent $500 million on film subsidies in its previous iteration and received no sustainable film industry in exchange for that,” said James Hohman, the director of fiscal policy for the Mackinac Center for Public Policy.
But Tuesday in Lansing, two Michigan lawmakers brought their legislation to relaunch the program to the House Economic Development and Small Business Committee.
“I know that people are a little hesitant about this incentive program, because they think about the last incentive program from 15 years ago. And I am certainly here to tell you that this is not that program,” Rep. Hoskins said.
Representatives Hoskins and Roth explained their proposed relaunch and the lessons learned from the past.
“It was criticized as a quote ‘Hollywood handout,’ as it allowed millions of taxpayer dollars to line the pockets of directors and producers and A-list actors. Our legislation features a compensation cap to make sure dollars are going where they should,” Rep. Hoskins said.
That old program provided actual rebates, cash from the general fund.
The proposed legislation would provide tax credits for work done here, added credits for work done by Michigan residents.
“That’s where we maybe failed and didn’t incentivize more was to keep that action here in Michigan,” said State Rep. John Roth.
Michigan’s first attempt to cash in on the booming film and tv industry may have missed the mark.
But these two believe, failing to try again, would be another costly miss.
“There is no reason why Michigan shouldn’t be in the game to and experiencing many of the same successes that other states have,” Rep. Hoskins said.
While opponents say past results may in fact reflect future performances.
“Economic development programs need to be judged by how well they develop the economy,” Hohman said. “The assessments made by economists suggest this is not going to be successful and we’ve seen that lack of success in Michigan’s own experience.”
The house bills have similar legislation over in the senate.
They have been introduced and are just in their infancy when it comes to actually becoming legislation.
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