Michigan Film Incentives Pay Off; But the Debate Continues

Michigan State University | October 9, 2008

Six months after Gov. Jennifer Granholm signed the Michigan Film Incentives bill into law -- offering up to 42 percent in rebates on film money spent here, one of the most generous film tax incentives in the nation -- Michigan now has a burgeoning movie industry. And even though the new industry injects what some see as rays of fiscal and emotional sunshine into Michigan's seemingly unending economic downturn, the debate continues over whether the effort is a boon to the state.

"The problem is that you have certain companies paying high taxes in order to provide benefits to other companies," said Gary Wolfram, a former deputy state treasurer and current professor of economics at Hillsdale College. "Why should giving money to the film industry to come here be any better than giving money to the dental floss industry?"

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