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Michigan set to restructure tax incentives

A bill has been passed by the U.S Senate which would affect the tax credits and incentives on offer to filmmakers choosing to shoot in Michigan.

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The vote was passed 33-4 and greenlights changes to the existing system whereby tax credits will be capped at 25% of production costs, plus 10% for a qualified post-production facility.

Designed to encourage filmmakers to hire local crew, the changes also include 10% of total funding for projects with budgets of under $15m.

The current system is structured differently, with a 20-32% cash rebate (35% maximum with bonus) and 3% bonus for direct production expenditures and Michigan personnel expenditures at a qualified facility or post-production facility.  This scheme is due to come to its sunset date end in 2017, but the proposed changes would override this with the new system running until 2021.

Detroit secured a major coup earlier this year as the bulk of the principal photography on Zack Snyder’s Batman v Superman: Dawn of Justice took place in the state, with the main production office based at Michigan Motion Picture Studios.

The director commented to local station WXYZ-TV near the end of filming that "it's my hope to come back because we've established a lot of locations on the movie here”.

According to local reports, the film was approved for $35m in film incentives on an anticipated $131m in Michigan spending.

For more on filming in Michigan, head to our production guide.