House panel votes to end Michigan film incentives

LANSING – There are three Cs that are essential to making any movie: Cost, convenience and creativity.

California beats Michigan out for convenience. But Michigan has the other two of those down cold, said Vans Stevenson, senior vice president for state government affairs at the Motion Picture Association of America: incentives for the film industry to hold down the cost of productions and a geography – ranging from urban nightlife to rural landscapes — that can creatively adapt to any script.

But the state is on the verge of losing one of those advantages since the House Tax Policy Committee voted Wednesday to end the incentives on Oct. 1, signaling the beginning of the end of a robust presence of movie, TV and media productions in the state. The full House and Senate still must vote, but the political winds seem to blowing against the industry.

Passage of the bill would likely spell an end to any chance of a permanent role for Michigan in the Warner Bros. franchise of future DC superhero movies. While director Zack Snyder of "Batman v. Superman: Dawn of Justice" has expressed a desire to return to metro Detroit for future spin-offs, the unofficial law of Hollywood is that big-budget projects go where the incentives are.

Ending the program, however, would have the biggest impact on the local film community, which is still fighting to keep alive the original goal of using the incentives to keep creative young people in Michigan and building an infrastructure and crew base to rival those of leading hubs like Louisiana and Georgia.

"Cost is the major factor in determining where a producer is going to locate a major motion picture," Stevenson said. "In the United States, there are 40 states that have incentives, 30 are competitive. And Michigan is on that list."

But perhaps not for long. The incentives never delivered on the promise of a permanent workforce dedicated to making movies in Michigan, said Trisha Kinley of the Michigan Chamber of Commerce. And the money spent on incentives came at the expense of a budget already strained by a host of other businesses cashing in tax incentives and blowing a $325- million hole in the state budget.

"The film subsidies send much of the $50 million allocated to them, out of state — to Hollywood millionaires and billionaires," said former state Rep. Tom McMillin, a leading opponent of the incentives. "A lot more jobs will be created by keeping that money in Michigan and employing Michigan workers to fix roads or keep the money in the pockets of business owners across the state, so they can hire more employees."

The incentives cost the state about $425 million since they were introduced in Michigan in 2008. But they also generated $1.3 billion in spending by producers on everything from wages and salaries to services ranging from lumber yards, to sound and lighting technicians, carpenters and electricians to food and lodging, according to annual reports filed with the Michigan Film Office.

"I've done seven or eight films here and tried to bring in other filmmakers to help employ people here," says Lance Kawas, director and screenwriter of small independent films like "Fractured" with Eric Roberts. "(If the incentives end) I would have to go to other states to work rather than bring that business here."

While big movies with big-name stars get much attention for coming to Michigan, the incentives are vital to local filmmakers, investors and crew members from numerous trades, not to mention local restaurants and hotels, says producer Eddie Rubin, who's based in West Bloomfield.

"I've worked to shoot everything I do in Michigan, so I can make this my home, be with my family and put money back into the economy here," says Rubin, who graduated from the University of Michigan in 2009 and has produced films like "Love and Honor" with Liam Hemsworth. "At the end of the day, state pride can only take you so far. You've got to provide for yourself and your family."

Rubin already is seeing the impact of Wednesday's vote on social media. "Just today, I've seen texts and Facebook posts saying, 'Alright, it looks like it's time to head out of here.'