Peter Klein remembers a time when there weren’t enough hours in the day to keep up with the work that he was getting as a cinematographer.
Now that the Michigan House Committee on Economic Development and Small Business has approved the bipartisan Michigan Multimedia Jobs Act he can see that happening again.
“I had my regular commercial work but I was constantly getting calls to do camera work on films,” Klein said of the glory days of the state’s film incentive program, which in 2008 was among the first in the country.
There’s always been a robust film industry here, television, advertising commercials, corporate videos and commercial photography, much of it being done for the automotive industry and going back as far as World War II when the short films being made about the war effort showcased tanks built in Detroit.
But it was the incentive program that expanded the work to include big movie projects such as “Batman V Superman: Dawn of Justice,” “Red Dawn,” “Real Steel,’ and “Oz The Great and Powerful” to name a few.
“I would get calls all the time asking me, ‘What are you doing on Tuesday, Wednesday or Thursday,” said Klein, who would then find himself on a Hollywood set made in Michigan cities such as Detroit, Pontiac, Grand Rapids and Escanaba.
“We have a very diverse environment for film and I think production companies were very pleased with the crews and locations,” Klein said, but this growing relationship among filmmakers was short-lived.
“Instead of trying to tweak the film incentive program it just got its legs cut off,” Klein said, his tone reflecting the disappointment he and other Michiganders working in the field felt after it was killed in 2015.
Among those forced to leave the state for work is Klein’s son, a graphic artist who had to move to Los Angeles.
Other sons, daughters, and Michiganders working in the entertainment field have had to do the same, which is why Klein and the Michigan Film Industry Association (MIFIA), for which he is a board member, are working diligently to get the Michigan Multimedia Jobs Act signed into law.
“I’m very positive about it,” said Luke Castle, a MIFIA member, creative director of Castle Heart Studios and founder and president of Royal Starr Arts Institute, a nonprofit supporting Michigan’s creative community by bringing artists together through networking, education and events like the film festival in Birmingham (Sept. 11-16). “It’s definitely bipartisan. We have people on both sides of the floor supporting it.”
Castle, who grew up in Richmond and has since moved to Midland, earned his film degree in Florida and returned to Michigan. But knows a lot of others in the industry including recent film school graduates who have gone on to work in Georgia and Ohio, which both have film incentives.
Pending legislation
“This new legislation is not an incentive. It’s a transferable tax credit that’s going to create good jobs for TV stars, commercial production shoots, short films and yeah, there’s stuff in there for big feature films too but it’s focus is to keep Michiganders working,” said Castle, who is also the creative director for CastleHeart Studios, a digital marketing firm that helps small businesses create content for their social media.
This past April the Michigan House Committee on Economic Development and Small Business approved the Michigan Multimedia Jobs Act, a new plan that draws the best from some of the most successful film incentive packages in the country (Georgia and Illinois) in order to create a plan that will invigorate the state’s economy, foster job growth, retain local talent and sustain the industry for the future.
The sponsors for House bills 4907 and 4908 are Reps. Jason Hoskins (D-Southfield) and John Roth (R-Interlochen). The corresponding bills to follow in the Senate (Senate bills 438 and 439) are sponsored by Sen. Dayna Polehanki (D-Livonia).
Klein said it’s likely the bills will pass the House and Senate and reach the governor’s office by the beginning of 2025.
As Castle said this plan is not an incentive or rebate but a transferable tax credit. By encouraging investment in the state’s creative sector this legislation seeks to position Michigan as a competitive hub for multimedia productions.
During the boom in 2011, Michigan’s film industry had 24 feature films and five TV series in the works amounting to about 15,000 jobs (5,000 in production) and about $500 million in wages, according to the MIFIA.
The new plan is expected to produce between $6 and $8 billion in direct spending during the first 10 years.
As a decade-long bill, it also means Michigan filmmakers will have an opportunity to build a base to help the industry grow and remain more sustainable in the future.
Ironically, Michigan was among the first states to create a film incentive program and yet now it’s among the few that don’t have one.
Over 40 states and cities and more than 100 countries have multimedia programs in place.
The key provisions built into Michigan’s new plan include:
• A tax credit for Michigan produced content: Film and television production companies hiring Michigan residents will receive a 30% tax credit. The Act also sets a $50,000 minimum qualified spend for commercials, commercial photography, and short films, and a $300,000 minimum spend for feature films and TV shows.
• Building marketplace for Michigan based projects: Rather than a rebate like the previous incentive, this program offers a credit against unrealized state tax revenue. This approach ensures that the cash remains within Michigan, benefitting local businesses and communities.
“We are looking for films that are $10 million to $40 million, where they are hiring local businesses,” said David Haddad, MIFIA chair. “This is an infrastructure bill in addition to jobs, jobs, jobs, and did I mention jobs?
Lights, camera, action
Besides veterans such as Klein and Castle, who have found a way to turn their passion into a sustainable career Michigan’s youth will benefit from the Act.
Castle said a recent survey of film student graduates reported more than half of them were leaving the state for work.
“We were just having a discussion about this,” said Doug Schulze, one of two filmmakers who founded the Motion Picture Institute in Troy.
Since opening 25 years ago, thousands of graduates, who found their niche as producers and directors, screenwriters and cinematographers, are working in the film industry.
When Michigan had its film incentives at least 80% of these graduates found jobs around home.
“When the film incentive went away between 25 and 40% had to leave the state. A lot of them are working in Georgia, which has a healthy film incentive,” added Schulze, who will be very glad to see the Act signed into law.
“I think it’s more reasonable and palpable for those who found the previous incentive difficult to support,” Schulze said.
“We really need this,” he added.
Klein concurred.
“The state was writing checks as rebates. Our bill is a tax credit, which flows back into the state because it’s a transferable, non-refundable tax program. You get a voucher,” Klein said, adding it’s comparable to other Make-it-in-Michigan programs designed to spur economic development.
“Michigan deserves this,” Klein said. “We have a lot of stories to tell and with 40 states and 100 countries already having one, we really need to be in the game.”
For more information visit Mifia.org
