Report: Film Credits Have Positive Return
Southfield (WWJ) A report conducted for convention and visitors bureaus in Detroit, Ann Arbor, Grand Rapids and Traverse City show Michigan is receiving a positive return for film tax credits.
The research by accounting firm Ernst & Young shows the film industry has created 3,860 full time equivalent jobs, with an average salary of $53,700 per year. In addition, the film industry has generated an estimated impact on statewide sales of $503 million in 2010 alone nearly six dollars per dollar of net credit cost.
The report looked at the net cost of the film, TV and digital gaming production credit by subtracting the estimated new taxes, fees and reduction in unemployment insurance benefits experienced by the state of Michigan from the earned credits in 2009 and 2010, producing a figure of $52.5 million in 2009 and $84.7 million in 2010.
"Diversifying Michigan's economy by investing $84.7 million - and generating over a half a billion dollars of economic activity and nearly 4,000 high paying jobs - sounds like a pretty good deal to us," said Larry Alexander, President & CEO of the Detroit Metro Convention & Visitors Bureau, in a statement announcing the new research.
A Senate Fiscal Agency previously said the incentives generate 10 cents in new tax revenue per dollar spent.
Those who support tax credits for the film industry are trying to keep the credits in place.
Governor Rick Snyder's budget plan calls for 25-million dollars in tax credits.
© 2011 WWJ Radio, All Rights Reserved. The Associated Press contributed to his report.
