Michigan offers rebate up to 20% on $10 mil

A new law allows Michigan to offer rebates on productions that spend between $200,000 and $10 million in the state. Here, a crew shoots in Detroit.

Michigan Gov. Jennifer Granholm improved her state's film production clout this past week with the signing of film incentive legislation.

Michigan had not been a particularly film-friendly location, losing production to states with competitive incentives.

Wolverine State's House Bill 5204, sponsored by GOP Rep. Bill Huizenga allows Michigan to join the ranks of states that have significant tax benefits for filming within their borders, thereby boosting the local economy.

The bill includes a graduated scale for rebates depending on how much a company spends in Michigan: Between $200,000 and $1 million, a company receives a 12% rebate; between $1 million and $5 million, a 16% rebate; and $5 million-$10 million, a 20% rebate.

Rebates are limited to a total of $7 million annually for the next four years and are on a first-come/first-served basis. Film, television and commercial productions are eligible.

To qualify, a film company must submit an application to the Michigan Film Office and State Treasury for pre-approval; spend at least $200,000; and not owe the state any money, guaranteed loans or be in default with the state.

"Michigan has a lot to offer in terms of talent, location and our natural environment, all strong assets to the film industry," Huizenga said. "This is a huge step for our economy as we give filmmakers the cue that Michigan is ready for full-feature films, commercials and TV series."

Commercial production has been a financial mainstay for Michigan, averaging annual billables of at least $1 billion, even though revenues are down at least 50% since 1996. Film revenues are at their lowest since 1992, totaling only approximately $2 million.

"The passage of the incentive bill means Michigan is back on the global playing field," said Janet Lockwood, director of the Michigan Film Office. "No worrying about tax credit questions -- in Michigan the question is, 'To whom do you want the check made out, Mr. DeMille?' "

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Ray Arthur, executive director of the Ridgecrest Area Convention & Visitors Bureau and Ridgecrest Regional Film Commission in Southern California has accepted a similar and newly created post in the city of Fresno.

Arthur, who ended a 21-year radio broadcasting career approximately 15 years ago to become Ridgecrest's first exec director, has been hired to create and operate a film commission for Fresno, California's sixth-largest city.

"My intention was to retire here in Ridgecrest and enjoy the sunsets, but I was presented with a wonderful opportunity and challenge that I couldn't resist," Arthur said.

Fresno's mayor and Economic Development department are very proactive toward commercial film production and related industries such as tourism, added Arthur.

"For Fresno, the film commissioner is not so much about moviemaking as it is about job creation, diversifying our economy and establishing a foothold in a multibillion-dollar industry," said Mayor Alan Autry, who, earlier this year was appointed to the California Film Commission (CFC) board of directors by Gov. Arnold Schwarzenegger. "We feel very fortunate to have Ray Arthur leading us into that new frontier."

Ridgecrest film and tourism revenue reportedly grew during Arthur's tenure, with film dollars estimated at $57.3 million since the commission's creation in 1992, thanks to pics such as Tim Burton's "Planet of the Apes," "Holes," "Hidalgo," "Terminal Velocity," "Jurassic Park," "Wayne's World 2," "Dinosaur" and "Hulk" in addition to TV shows, musicvids and more than 1,000 commercials. Tourism jumped from $4 million to an estimated $30 million.

Arthur also is the chair of Film Liaisons in California Statewide (FLICS), an organization of 44 film commissions throughout the state whose mission is to attract and retain film production in California.