SB 1188 Summary

• Establishes a film and digital media tax credit available January 1, 2022 through December 31, 2031 for qualified film and television productions produced in Michigan, with credit rates of 25-30% for direct production expenditures and 20-30% for personnel expenditures depending on residency status.

• Sets annual credit caps of $2-10 million for productions under 20 minutes and $50-100 million for productions 20 minutes or longer, with caps increasing over three-year periods within the 10-year program.

• Requires applicants to pay nonrefundable application fees ($1,000 for productions under 20 minutes, $2,000 for longer productions) and meet minimum spending thresholds ($50,000 for short films, $300,000 for longer productions) in Michigan.

• Allows approved applicants to claim credits against Michigan corporate income tax liability, with unused credits carrying forward for 5 years, and permits transfer of credits to up to 10 assignees within one year of certificate issuance.

• Imposes a 0.5% redemption fee on claimed credits and requires independent certified public accountant verification of expenditures before credit certificates are issued by the Michigan film and digital media office.