SB-0511 Summary

• Establishes a Michigan film tax credit program for motion picture production companies that spend at least $200,000 in-state on filming or production activities for tax years beginning after December 31, 2006 through February 29, 2008.

• Provides tiered tax credits based on production spending: 12% for $200,000-$1,000,000; 16% for $1,000,001-$5,000,000; and 20% for $5,000,001-$10,000,000, with credits capped at $10,000,000 in production spending per project.

• Requires companies to enter into agreements with the Michigan film office, obtain postproduction certificates of completion, and comply with requirements including 90-day production commencement deadlines and prohibitions on obscene content.

• Caps total available credits at $7,000,000 per tax year and limits agreements to 4 motion pictures per production company per year, with excess credits refundable from the state general fund.

• Requires annual reporting to the governor and legislature on program effectiveness, including information on productions funded, spending amounts, employment estimates, and cost-benefit analysis.