Cassis introduces film credit transparency measure
Wednesday, September 09, 2009
LANSING—State Sen. Nancy Cassis today introduced legislation in the Michigan Senate to increase transparency and reporting requirements within the state’s film production credits.
“This is about bringing transparency to the film credits so that we can measure the success of the program.” said Cassis, R-Novi. “Lawmakers constantly have to go back to the film office for information they need to determine the effectiveness of these credits. It is a slow and inefficient process that often fails to yield the required data.”
Cassis noted the new bill builds upon Senate Bills 70 and 71, the Michigan Economic Growth Authority transparency measures, which were approved by the Senate on Feb. 12 and are awaiting House action.
“Michigan is facing a $2.8 billion budget deficit and the films credits are expected to cost more than $140 million next year,” said Cassis, chair of the Senate Finance Committee. “Ensuring that the film credits are working as they were designed to do is the fiscally responsible action to take.”
Senate Bill 796 would require the Michigan Film Office to place on its Web site, four times per year, a detailed report that includes the:
- Number of applications received, name and description of production, locations in state and amount of money expended by production;
- Number of applications approved during quarter and cumulative total for year;
- Number of post-production certificates of completion issued during quarter and cumulative total for year; and
- Actual amount of refundable credits allowed during the quarter and cumulative for the tax year.
The bill also requires the department to send a copy of each post-production certificate of completion to the governor, president of the Michigan Strategic Fund, chairpersons of the Senate Finance and House Tax Policy committees.
Reports by the Mackinac Center and the Anderson Economic Group have raised serious questions about the effectiveness of Michigan’s tax credits, singling out the film credit for its poor performance and accountability.
“Bringing sunshine into film credits will help keep lawmakers and the public informed about where tax dollars are going and what return we are getting on those investments,” Cassis said. “Transparency in all areas of state government is good policy. It brings accountability to state spending and ensures that lawmakers have access to reliable information when evaluating programs and drafting legislation.”
SB 796 requires the Michigan Film Office annual report submitted on March 1 to include the amount of other state and local assistance provided in addition to the film production tax credit.
The report would also be required to include the actual number of people employed in state by eligible production companies, the number of Michigan residents employed and a breakdown of jobs classified as full-time or part-time.








