A package of bills (with broad bipartisan support) was under consideration Tuesday in the Michigan Capitol which will provide business tax incentives to film producers, video game developers, and other entertainment based ventures. The key component of the legislation introduced last week is a 40% business tax break for firms engaged in moviemaking in Michigan, with a 2% bonus cut for work done in urban core communities. Text of the just-introduced House bill on business tax breaks is here.

Proposals are included in the bill package to give tax breaks for the development of entertainment industry infrastructure in Michigan, and for Michigan-based job training related to film and video production. Assistance is to be made available to companies making movies, documentaries, TV series and specials, and for an assortment of new media ventures, including video game, Internet and interactive programming. The emphasis is on supporting feature and creative production: producers of live sporting events, game and award shows, and adult entertainment would not be eligible.

The proposed law is part of a sustained effort to welcome film and entertainment businesses and startup activity to the state. A law which took effect in January 2007 gives film and production companies a break on the Michigan state sales tax. Rep. Bill Huizenga (R-Zeeland) initially sponsored that legislation. According to a Screen Magazine article commenting on the legislation and reporting on an interview with Huizenga, these bills “were crafted after seeing what other states, like Louisiana, Illinois and New York, had done to provide incentives.”