Recent changes to Michigan’s film and digital media incentive program under Public Act 396 of 2014 (enacted on December 26, 2014) offer new statutory guidelines that will be in effect for all applications and pending applications with the Michigan Film Office.
The most significant changes from the previous incentive program are highlighted in the graphic below:
Updates to Michigan Film Incentives
The new law stipulates that projects will be required to hire Michigan residents in order to be eligible, laying out required hiring ratios on the following schedule:
- Michigan resident for every non-resident hired – January 1, 2015-September 30, 2017.
- 1.5 Michigan residents for every non-resident hired – October 1, 2017-Sept. 30, 2020.
- 2 Michigan residents for every non-resident hired – October 1, 2020-Sept. 30, 2022.
- 3 Michigan residents for every non-resident hired – after October 1, 2022
The law also requires that all deferred, residual or contingent compensation and royalties be subject to taxation in Michigan and applicable taxes be withheld and paid to the state for a period of not less than 12 years following the theatrical release of the qualified production or that all ATL loan outs must be registered to do business in the state.
Finally, this new legislation updates how our the Michigan Film Office program is administered, but does not impact the current funding process in any way.