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Overflowing Crowd Defends Film Tax Credits

LIVONIA (WWJ) - Thousands showed up in Livonia Thursday evening to rally against Michigan Governor Rick Snyder's plans to eliminate the state's uncapped film incentive program. Currently, tax rebates up to 42 percent of filmmakers production expenses are offered.

Actress Angelina Buffalini of Grosse Pointe said the incentives create a lot of jobs.

"It's not just about the actors, it's about the electricians,the scene people the costume people and you are taking that away, it's sad, it's just really sad," said Buffalini.

The incentives rebate up to 42 percent of a filmmaker's production expenses and instead offer $25 million each for fiscal 2012 and fiscal 2013. He also would honor $75 million in previously awarded credits in fiscal 2012.

Detroit native, film writer and director Mike Binder proposed a compromise at tonight's town hall meeting. Legislators should consider giving the industry a cap of $100 million to $150 million annually but lower the percent of the rebate to 35 percent one year, 30 percent another, down to 25 percent, he said.

"I think you need to call your legislators and really bug the hell out of them," Binder said.

Supporters want to keep the likes of George Clooney and Clint Eastwood, major motion pictures such as "Transformers 3" as well as the ABC-TV show "Detroit 1-8-7" filming in the mitten state. But proponents have said cutting the state's incentives to $25 million would kill the industry before it gets off the ground.

Some studies have shown that the program costs the state more than it had generated in revenue. Snyder has argued that he wants to reform the tax system so more businesses receive tax relief instead of the fewer business recipients who get targeted tax benefits through various state tax break programs.

Incentives were introduced in April 2008 and have led to 133 film project completions, $648 million in in-state production spending and the creation of 7,000 jobs in 2008 and 2009, according to the Michigan Film Office. Michigan also has paid out $95.6 million to production companies under the film incentives.

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