Movie producers seeking Michigan film tax incentives
Dozens of movie producers are queuing up to bring their projects to Michigan since the state enacted its Film Incentive Public Acts of 2008 that offer unparalleled film tax incentives of up to 42 percent to filmmakers who bring their projects to the Great Lakes State.
As with most tax incentives, the processes from applications to filing claims for a film rebate are complicated. So moviemakers are turning for assistance to the highly respected tax specialists at Plante Moran, Michigan’s largest accounting and management consulting firm.
Film producers can expect hands-on experience
Moviemakers can depend on the firm’s long-term working relationships with state government and the diverse skills of its more than 1,500 staff members. The firm traditionally has professionals with hands-on industry experience from manufacturing to health care. In this case, a leader of the specialty tax team is an active member of the Screen Actors Guild (SAG).
The Film Industry Is in Demand
During 2008, Michigan, Ohio, and Illinois passed or extended tax credits or programs aimed at attracting film companies. Michigan enacted an unparalleled refundable film tax incentive of up to 42 percent of production costs to filmmakers who bring their projects to the Great Lakes State. Ohio created the Ohio Film Commission (with 40 board members!) to assist in the development of Ohio’s film industry. And Illinois remained in the incentives game by extending credits equal to 20 percent of film production spending in Illinois.
Timing is important to receive Michigan film tax incentives
The Michigan Film Office emphasizes that producers, who want to take advantage of the Michigan film tax incentives, have to have an agreement approved and signed by the film office and the Michigan Department of Treasury before incurring any eligible production expenses.
To assemble successful applications, film producers are turning to Plante Moran for help. Applications for Michigan film tax incentives must include estimated Michigan expenditures, Michigan production days, Michigan hires, and more. The Michigan film rebates cover expenditures including labor and crew expenses. There are also infrastructure tax-saving opportunities and a nontransferable, nonrefundable workforce development tax credit for hiring and training current Michigan crew members to a higher level.
The Michigan film incentive package for filmmakers includes 15 sections, and Plante Moran tax specialists are acquainted with the requirements and benefits of each section. The law focuses on tax credits, but if a production company receives more credits than taxes owed, it can apply for a Michigan film rebate check.
At Plante Moran, we have assembled a specialized team that can support movie producers with services, including Michigan film tax incentives application process assistance, cost certification, and film rebate/tax credits claims.