A new report says Michigan’s aggressive tax incentive program for the movie industry is not a good deal for the state budget.

 The nonpartisan Senate Fiscal Agency report released Friday says about $37.5 million in credits during the 2008-09 fiscal year reflected nearly $98 million in private spending. But nearly half of the spending left Michigan and didn’t contribute to economic activity in the state.

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The report estimates the additional economic activity sparked by the credits raised less than $4 million in additional tax revenue for the 2008-09 fiscal year.

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The credits have created some jobs and publicity for Michigan but at a high cost.

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The Michigan Film Office was expected to respond to the report later Friday.
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