The official history of motion picture production in the U.S. state of Michigan dates back to the beginning of the Post–World War II baby boom.
[1] Contemporary nationally known works filmed in the state include the drama Conviction (2010), starring Hilary Swank and Sam Rockwell,[2] Kill the Irishman (2011), starring Val Kilmer and Christopher Walken,[3] HBO's series Hung was filmed, and is set in, Detroit,[4] and the Discovery Channel's Motor City Motors (2009), formerly Monster Garage (2002-2006).
[25][26] Introduced for the purpose of workforce and infrastructure development, a refundable or transferable tax incentive focuses on film, television and digital media production in the state of Michigan.
The pre-2012 enactment of the film incentive, included a 40-percent subsidy for covered personnel expenditures, with an additional two-percent available for projects produced in Michigan's 103 core communities.
[28] The 2007 Census reports that Michigan's participation in the North American Industry Classification System (NAICS) group, 512110 Motion picture and video production, had 923 employees participating in total salaries of $38.5 million annually ($41,767.00 average); the national employment pool, consisted of 142,620 employees, and generated salaries of $11.9 billion ($83,438.50 average) in the same year.
CNN reported that agreements signed prior to the cap proposal would be honored and that there were 43 pending applications on file at the Michigan Film Office.
John E. Nixon, CPA and Michigan Department of Technology, Management, and Budget claimed that the Governor was not opposed to efforts to attract the film industry but was concerned about uncapped and unfunded expenditures.
Criteria for incentive approval are listed as follows:[30] Act 291 did not provide separate funding for infrastructure and workforce development for 2012 and no business tax credits were claimed in these categories for 2011; in the Michigan Film Office 2011 report, the Office was unclear on any discretion regarding funding infrastructure and workforce development expenditures within the $25 million annual cap.
[9] In March 2011, the Michigan Film Office reported to CNN Money that 43 pending applications could not be addressed until the legislature reached a final decision.
[30] Opposed to the Michigan Film Incentive was the Center for Public Policy, which claimed that employment growth was too modest for the amount of money the state was spending.
"[37] Proponents of the film incentive cited a multiplier effect,[38] whereby the simple act of money changing hands creates excise tax income, investment and consumer optimism.
As proof, he offered the situation where Allen Park was contemplating laying off its fire department largely because Unity Studios relocated to Detroit.