State of Michigan Tax Incentives:

Production Incentives

40% Tax Rebate (refundable tax credit) for Michigan Production

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.

Additional 2% credit in Core Communities.

Rebate reduced to 30% for non-resident crew.

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)]

Infrastructure Development Incentives

Film & Digital Media Infrastructure Investment Tax Credit

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)]

Workforce Development Incentives

Film & Digital Media Worker Job Training Tax Credit

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)

Other Incentives

Free Use of State Property for Film and Digital Media Production

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)