The Tax Foundation’s International Tax Competitiveness Index ranks the United States tax code 32nd out of 34 OECD countries. An obvious question to ask, then, is why the U.S. remains so wealthy, and so successful at...
- The Tax Policy Blog
- 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:
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.