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• Only verified qualified expenditures that have been spent qualify for the incentive. This allows Michigan to receive both the economic impact in the state as well as collect the taxes on those expenditures before a tax credit is issued.
• Money is never issued by the state.
• Only a State of Michigan Tax Liability may be offset.
• A $50K qualified spend for projects less than 20 minutes, or $300K for 20 minutes or more must be spent in Michigan (live action or animation).
• 30% Credit for qualified Michigan residents.
• 25% Credit for qualified Michigan-based vendors.

• 20% Credit for qualified non-resident personnel expenditures.
• $500K salary cap for person per project.
• Above the line (producer, director, writers, etc.), below the line (crew, post-production) and talent qualify.
• Post production done in the state will count if the minimum spend requirement is met.
• If a marketer uses a Michigan-based advertising agency to develop the commercial and it films in the state, a portion of the creative development Time of Staff would qualify.
• Commercials and Industrials have their own allocated bucket of tax incentives.
  

• Industrials and Corporate Videos qualify.
• Multimarket distribution is NOT a requirement.
• Allows 3rd parties to apply on behalf of the copyright holder.
• CPA verification required.
• 48 hours prior to 1st shoot day, applications must be submitted for content under 20 minutes, or 5 days for content 20 minutes or more.
• Transferrable once to up to 10 assignees within one year from the credit being issued (allows credit to be sold via a broker, typically at a discount of 80-90 cents on the dollar).
• There is a $1,000 non-refundable application fee for projects less than 20 minutes, or $2,000 for projects greater than 20 minutes. 

How the Incentive is Redeemed

Participants can use tax credits against their own State of Michigan tax liabilities or the tax credit can be sold to an assignee that has a State of Michigan tax liability. If participants don’t have a State of Michigan tax liability, they can sell it via a broker for typically 80-90 cents on the dollar to an assignee with State of Michigan tax liability. This helps both Michigan companies and the applicant/copyright holder that produce in Michigan.

The commercial production film incentive as currently proposed has its own allocated bucket of money. All of the year's unused allocations rollover to the next year.

The Commercial/Corporate video cap grows from $2 million for each of the program's first three years, then $5 million for the next three years, and $10 million in the remaining four years of the program.

The Film/TV cap grows from $50 million for each of the program's first three years, then $75 million for the next three years, and $100 million in the remaining four years of the program.

Why Michigan Needs a Film Incentive

Over 40 states have film incentive programs. Of these, 25 states and Puerto Rico have advertising commercials as part of their programs.

Illinois, Minnesota, Ohio & Pennsylvania all have film programs that include advertising commercials.

Michigan is not on an even playing field with the nation, let alone with its neighboring states. Our state misses out on opportunities to host film, TV, advertising, and corporate video projects. Some of the competition also comes from overseas where marketers are finding financial benefits through lower production costs.

Proposed legislation in Michigan has the potential to elevate our state as a leader in film production and not stand idly by while its robust production industry loses out to more competitive states.

MiFIA has consulted with professionals who’ve helped craft other state’s film incentive legislation. The proposed legislation was built from the ground up and has been scrutinized for the successes and failures of other states’ programs.