Film incentives are driving Hollywood

Though Michigan isn’t the only state that has tax breaks for filmmakers, it does have some of the highest. There are people who feel that the breaks go too deep and they should be scaled back… but… this piece in the Wall Street Journal points out that tax incentives are taking on a bigger and bigger role when it comes to the production. We don’t want to lose that, do we?Excerpt:In recent years, many countries, plus several states around the U.S., have ramped up tax incentives and subsidies, competing with each other to attract film-production dollars in hope of boosting the local economy. Michigan offers credits for as much as 42% of a film’s in-state budget, and Utah and North Carolina have both recently increased their incentives to stay competitive. France recently enacted a new law that creates a 20% rebate for foreign productions shot in the country that have ties with French culture. The incentives have become critical for many independent producers, who have found it increasingly difficult to raise film financing through the usual channels, including loans and pre-sales to distributors abroad. While Mr. Vollkammer is an independent producer whose prior movies include thrillers such as Grace, One Way and Walled In, major studios haven’t shied from taking advantage of such incentives. Warner Bros. shot Clint Eastwood’s Gran Torino in Detroit after Michigan enacted its tax credits.Read the entire article here.