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Take two for Michigan film incentives? How these proposed new ones would be different & community response

Are MI film incentives returning? What do you think of this second take?
Posted at 1:27 PM, Feb 14, 2024
and last updated 2024-02-15 18:13:48-05

(WXYZ) — Hollywood could be on its way to Michigan once more.

A second take of tax incentives for television and film projects in the state is being considered by Michigan lawmakers, but not everyone’s convinced.

This revamped incentive plan would offer filmmakers up to 30% tax credits for filming in Michigan and hiring Michigan workers, those who oppose it say Michigan’s last round of tax incentives did more harm than good and that the state should learn from the loss.

"Sometimes I’m an actor, director, producer, sometimes I’m a producer, director, " said Michael Manasseri.

Manasseri is the perfect man to cast for the role of “who you should talk to about Michigan movie incentives.”

"I am a product here in Michigan of actually the first Michigan film incentive," he said.

Manasseri tells me he moved to Michigan during the first round of film incentives that lasted from 2008 to 2015.

It was the first time he was able to live by his family in Michigan and do what he loves: create movie magic.

"I had a project I brought directly from LA, it was called The Tension of the Dead, it was a zombie comedy. I had another movie called Sucker, it was basically a mosquito man superhero movie,' he said.

In 2014 during the first incentives, Batman v Superman was filmed in Detroit, the Wayne Building in the movie is actually Detroit's Guardian Building.

All five Transformers movies were also shot in Detroit during the incentives.

Manasseri says the creative energy was palpable, until the incentives ended in 2015.

Now, the film industry in Michigan is "sadly, almost nonexistent," according to Jonathan Braue, founder and CEO of Woodward Original.

Woodward Original is one of the few film companies left in the state.

Braue is also the treasurer of the Michigan Film Industry Association, which is working to get a second take on Michigan film incentives passed by lawmakers.

Braue tells me this new round of incentives would be very different from the first failed attempt.

"So the legislation that we had at that time is what is called a rebate program. So anybody, somebody from the state, or somebody from outside of the state, could come into Michigan, set up their production and they were basically guaranteed 42%, at one point, and I know it fluctuated, but at it’s peak, it was 42% for every dollar that they spent and that was a check that was written to them. So you bring in a 10 million dollar film, you’re getting 4.2 million dollars ... and you can take that anywhere, that’s a massive problem because we’re just giving away our tax base at that point," he explained.

Braue says that problem would be fixed with these new incentives — modeled after Georgia’s current program.

"The difference was they have a transferable tax credit program and very simply what that means is that the tax benefit has to stay in the state. So you can’t just take it to another state," he said.

This month there was a hearing for and against the new incentive , Braue says the general response has been overwhelmingly positive.

"I see myself settling down in Michigan, of course I want to travel but home is always going to be Michigan, so if they’re making movies in my home state, I would come back here because I want to be in a movie one day," said Lillie McClenney of Battle Creek.

"I feel like that’s the one piece that I am missing here in Michigan is that ability to work on set and have that creative aspect," said Erik Garcia, a hairstylist who moved to Detroit from Los Angeles.

"I hope they are able to work out a deal and they come back, I enjoyed seeing them around," said Marie Butler, who was born and raised in Detroit.

But not everyone’s a fan of the plan.

"That money could be better spent producing economic benefits elsewhere. The money that we spent on film subsidies could be used for roads, or schools, or any other public service," said James Hohman, director of fiscal policy for the Mackinac Center.

Hohman remembers when the state spent half a billion dollars subsidizing the film industry 10 years ago and in return multiple Michigan studios went bankrupt, one in Allen Park which almost bankrupted the entire city, and nothing sustainable was gained.

Video Extra: James Hohman, director of fiscal policy for the Mackinac Center

"This is an economic development program that ought to be judged by how well it develops the economy and we know from experience that it just does not produce the desired effect," he said.

Hohman tells me he’s disappointed the state seemingly hasn’t learned from their previous mistakes.

Meanwhile Manasseri has remained in Michigan convinced big screen productions have a home here.

Will it happen? It appears we may be at the summit of this film, all waiting to see what will be the ending.

"If you can come back home, afford a house, be doing the creative job that you have wanted to do your entire life, and that you had to go away to do, and now you can come back home, that’s huge," said Manasseri.

In order for these incentives to go into effect, the bills would need majority approval in both the House and Senate and approval from Michigan Governor Gretchen Whitmer.

How do you feel about a possible Michigan tax incentive plan? Message us on Facebook and let us know your thoughts.