Film Tax Credit

40% refundable tax credit against Michigan Business Tax (MBT) liability for qualified film or digital media pre-production, production, and post-production costs incurred in Michigan. Alternatively could be claimed against Michigan income tax withholding tax liability.
Refundable and assignable (transferable). This is a refund or tax rebate equal to 40% of qualified production expenditures, not a credit against taxes owed.

Wages capped at $2 million per person per production.
$50,000 minimum spend. No project cap. No annual cap. No sunset. [Amend Michigan Business Tax Act (HB 5841), General Sales Tax Act (HB 5842),and the Income Tax Act of 1967 (HB 5844)]

Investment of $250,000 or more ($100,000 or more in 2008 only) in Michigan film or digital media production infrastructure (such as studios, equipment, or other facilities) eligible for a 25% tax credit against MBT liability.
Credit is assignable or may be carried forward.
Total credits allowed limited to $20 million annually.
Credit reduced for Brownfield credits claimed for same investment.
Sunset on September 30, 2015. [Amend Michigan Business Tax Act (SB 1173)]

MEGA Eligibility for Film & Digital Media Production Companies

Authorize film and digital media production companies to apply for and receive job creation tax credits issued by the Michigan Economic Growth Authority (MEGA) against MBT liability.
Designate films and digital media as a high-technology activity eligible to receive tax credits issued by MEGA against MBT liability for high-technology job creation. [Amend Michigan Economic Growth Authority Act (SB 1174)]

Authorize the Michigan Strategic Fund to offer loans from the Jobs for Michigan Investment Fund (part of 21st Century Jobs Fund Program) for up to $15 million per qualifying film and digital media productions in Michigan.
Loans can be 0% with backend participation by the Jobs for Michigan Investment Fund in lieu of interest.
Terms of loans are negotiated and production budget must be at least $2 million.
A guarantor for the loan must be in place. Production must be wholly or substantially shot in Michigan.
Qualified productioncompany eligible for both loan and 40% production tax credit.[Amend Michigan Strategic Fund Act (HB 5848)]

Authorize a qualified production company to receive all or a portion of the value of discounted tax credits the company is eligible to receive in the form of a loan from the Jobs for Michigan Investment Fund approved by the Michigan Strategic Fund. Credits would be pledged for the repayment of the loan.
Loans would be provided an interest rate of up to 2%.
Minimum loan amount would be $500,000.
No loan would be greater than the discounted value of the tax incentives pledged.
Productioncompany would be responsible for loan repayment regardless of performance of primary tax incentive. [Amend Michigan Strategic Fund Act (also HB 5848)]

Authorize film and digital media production companies to participate in the capital access program established by the Michigan Strategic Fund under the 21st Century Jobs Program.
Participating banks throughout Michigan would offer CAP loans directly to production companies that need credit enhancement. Similar to a loan loss reserve fund, the bank, the production company, and the Michigan Strategic Fund pay a small premium into a reserve that makes it possible for the company to receive fixed asset and working capital financing in the form of a private loan from the bank. [Amend Michigan Strategic Fund Act (also HB 5848)]

50% MBT tax credit for expenditures incurred by an eligible production company to provide on-the-job training for Michigan residents in advanced below-the-line crew positions on qualified productions.
Expenditures eligible for job training tax credit could not also be claimed for the 40% production tax credit.
Sunset on September 30, 2015. [Amend Michigan Business Tax Act (SB 1176)

Allow state departments and agencies to provide free use of state property for film and digital media productions. [Amend The Management and Budget Act (SB 1178), the Michigan Military Act (HB 5852), the Natural Resources and Environmental Protection Act (HB 5853)), and 1964 PA 286 (Transportation HB 5854)]
Allow local governments to provide free use of local government property for film and digital media production
Explicitly authorize local governments to provide free use of local government property for film and digital media productions. [Add New Act affecting local governments to Chapter 123 of the Michigan Compiled Laws (HB 5855)

Clinton County Economic Alliance