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Each year, per the incentive bill, MFO must report.
The language of the 2007 bill states:
Not
later than March 1 of each year, the department of history, arts, and
libraries
shall submit to the governor, the chairperson of the senate finance
committee,
and the house tax policy committee an annual report concerning the
operation
and effectiveness of the credit under this section. The requirements of
section
28(1)(f) of 1941 PA 122, MCL205.28, do not apply to disclosure of tax
information required by this subsection. The report shall include all
of the
following:
(a)
A brief
assessment of the overall effectiveness of the credit under this
section at
attracting motion picture productions to this state during the
immediately
preceding year.
(b)
The
number of motion picture productions requesting tax credit
preproduction
approval letters during the immediately preceding year, the names of
the motion
pictures produced in this state for which credits were begun or
completed in
the immediately preceding year, and the locations in this state that
were used
in the production of approved motion pictures in the immediately
preceding
year.
(c)
The
amount of money spent by each motion picture production company
identified in
subdivision (b) to produce the motion pictures in this state and a
breakdown of
all production spending by all companies classified as goods, services,
or
salaries and wages.
(d)
An
estimate of the number of persons employed in this state by motion
picture
production companies that qualify for the credit under this section.
(e)
The value
of all tax credit certificates of completion issued under this section.
(f)
An
estimate of the cost to the general fund resulting from the tax credits
claimed
under this section and an estimate of increased direct and indirect
spending in
this state due to motion picture production.
(g)
A brief
review of the practices and experiences of other states and provinces
with
similar incentive programs.
(h)
Any other
information deemed important by the department to include in the report.
It is very important to note that this report is based on the 2007
incentive bill...not our newly minted one. We will see the 2008 report
March 1 2009.
But reviewing the report just begs more questions doesn't it?
For example, I'd like to see more detail in just what goods and
services are included and in particular the figure for "estimate of
increased direct spending" ($4, 600,000) as well as an explanation of
direct verses in direct spending.
It would be great for this report to have been posted prior to the signing of our current bill and to also compare other State's bills (a current snapshot) on a yearly basis as a basis for future adjustments -
we should always be thinking ahead, what can we offer that's better,
what works, what does not and these reports would have greater value
with more such information. In the law requiring this document the
following stated requirements do not seem to be included.
(g)
A brief
review of the practices and experiences of other states and provinces
with
similar incentive programs.
(h)
Any other
information deemed important by the department to include in the report.
I think comparisons and ideas for future additions should be deemed
important...you too?
The 2008 report should be more interesting especially if we are able to
perhaps get some more detail. Also, I'd like to see such reports posted
on the MFO website for reference...it is a public document.
Pursuant to that requirement, here is MFO's report for
2007:
February 29, 2008
Annual Report to: Governor
Jennifer M. Granholm
Chair,
Senate Finance Committee, Senator Cassis
Chair,
House Tax Policy Committee, Rep. Bieda
Re: Assessment of the 2007 Michigan Film Incentive
The overall effectiveness of the current film Michigan Film
Incentive has been minimal. Only two
feature films and one video project applied for the funds, in spite of
some targeted marketing, including direct
and personal mailings to nearly one thousand identified film and television decision-makers
nationwide, a smaller direct mail and telephone campaign to identified high
level decision makers nationwide, and a modest outreach to foreign filmmakers.
In our opinion, the lack of response is due to other states almost immediately
surpassing Michigan's
incentives
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Each year, per the incentive bill, MFO must report.
The language of the 2007 bill states:
Not
later than March 1 of each year, the department of history, arts, and
libraries
shall submit to the governor, the chairperson of the senate finance
committee,
and the house tax policy committee an annual report concerning the
operation
and effectiveness of the credit under...
