President Obama’s fiscal year 2015 budget proposes to increase taxes on individuals by over $820 billion and on businesses by about $500 billion, for a total of over $1.3 trillion in new taxes over the next ten years....
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- Michigan Governor Proposes Cap on Film Tax Credit
Michigan Governor Proposes Cap on Film Tax Credit
Michigan Governor Rick Snyder has proposed capping his state's film tax credit program at $25 million annually. In recognition that film tax credits are not nearly the great deal for taxpayers that the film industry makes them out to be, a few other states have moved in the direction of capping or completely eliminating their film tax credits in the last year or so.
The cost-effectiveness of film tax credits has been debunked numerous times. The author of a study from the Michigan Senate Fiscal Agency summarized that "as is true for most tax incentives, the film incentives represent lost revenue and do not generate sufficient private sector activity to offset their costs completely."
Of course such a proposal is going to garner a lot of attention in a state like Michigan, which is one of the most generous to the film industry. The state gave away $100 million last year in tax credits and cash rebates and the Governor's proposal would limit that to "only" $25 million. The ad campaign against the cap started today.
More on Michigan's Film Tax Credit:
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