The Multimedia Jobs Act (MJA) is new legislation that builds creative and tech-related industries to attract new jobs and talent to Michigan.
The two-bill package was introduced in the House by Representatives John Roth (R-Interlochen) and Jason Hoskins (D-Southfield) as HBs 4907-4908. Senators Dayna Polehanki (D-Livonia) and Jeremy Moss (D-Southfield) introduced SBs 438-439 in the state Senate.
Check out our overview video below to get up to speed quickly.
40 41 states and cities (Missouri just enacted an incentive in May 2023), as well as, over 100 programs globally have film and multimedia incentives. In this industry, Michigan is not on an even playing field and can’t even compete with its neighboring states.
This bi-partisan legislation was rebuilt from the ground up to accomplish attainable goals. The program creates jobs while prioritizing in-state labor and businesses, promotes diversity, minimizes Michigan’s “brain drain,” and boosts tourism. It will also have a positive economic effect on many other industries, not just the film industry. Unlike many other states, our legislation also includes commercials, corporate videos and commercial photography.
It is a transferable tax credit, so the credit stays in the state to benefit Michigan companies. Money is never issued by the State. Economic benefit from immediate spending takes place well before the credit is issued. The bill promotes steady and sustainable growth and the 10-year sunset establishes confidence in the program and allows ample time to build infrastructure and a solid crew base.
The bill is financially accountable. It begins with an initial credit cap of $125M for each of the first three years and includes modest increases in subsequent years. And a built-in redemption fee assessed on each project will help fund the Film and Digital Media Office.
We are anticipating $300M - $500M of direct spend in the first year. If the qualified production decides to keep the post production in Michigan, those qualified expenditures will count towards the credit as well. These are high-paying creative and tech jobs.
The Michigan Multimedia Jobs Act is a fiscally responsible program that addresses our state’s pressing economic need for growth. The bill is PRO JOBS, PRO ECONOMY and PRO MICHIGAN and has the potential to, once again, elevate our state as a leader in Multimedia Production.
Here is how our bill, with the inclusion of a commercial/corporate industrial component, will elevate Michigan as the industry leader and help boost Michigan businesses and labor:
Marketers can use tax credits against their own State of Michigan tax liabilities or they can be sold to an assignee that has a State of Michigan tax liability. If they 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 Michigan Multimedia Jobs Act as currently proposed in our bill has an allocated bucket of money for film/TV and a separate bucket for commercials, corporate videos and commercial photography. All unused allocations rollover each year there is a surplus to the next year.
The commercial, corporate video, and commercial photography cap grows from $25M for each of the first 3 years of the program, then $50M for the next 3 years and $75M in the remaining 4 years of the program.
The film/TV cap grows from $100M for each of the first 3 years of the program, then $150M for the next 3 years and $200M in the remaining 4 years.
The reaction to our bill is being positively received in the state Legislature by Democrats and Republicans.
Legislators are beginning to understand the urgent need for creative solutions to our economic predicament and see the opportunity with the Michigan Multimedia Jobs Act. Other states have already taken steps to re-instate film incentives or even increase their offerings. Demand for content is high and growing with marketers, TV, film and streaming services looking for content.
Michigan has a budget surplus of over $9 billion. A multimedia jobs act is very timely as it will certainly boost jobs, retain and attract talent, and stimulate economic activity.
Please Note: Any items listed above are subject to change as the bills work their way through the legislature.