HB 5878 Summary

• Reduces direct production expenditure reimbursement from 27% to 25% for state certified qualified productions with expenditures after December 31, 2014.

• Eliminates separate funding categories for "Michigan personnel expenditures" and "crew personnel expenditures," consolidating them into "qualified personnel expenditures" with a single 25% reimbursement rate after December 31, 2014.

• Adds restrictions on personnel expenditures: above-the-line personnel cannot exceed 25% of total direct and qualified personnel expenditures, below-the-line crew cannot exceed 50%, and direct expenditures cannot exceed 25%.

• Requires personal services corporations providing above-the-line personnel services to be organized under Michigan law.

• Removes the September 30, 2017 sunset date for awarding funding under the film and digital media production assistance program.