Raleigh Michigan Studios - Artist Model of Planned Development

In a recent article published by the New York Times, a tax incentive that was approved by the govenor, Jennifer M. Granholm, in April 2008 is beginning to have some results in Michigan.  The tax incentive provides a 40 percent tax credit or cash rebate for studios on their business tax returns.  There is also a 25 percent infrastructure credit, which is applied against expenditures on construction of a studio and its contents.  The article highlights a couple recent purchases of auto plants by film executives including:

Linden Nelson, 49, chief executive of Nelson Ventures, a private investment company, has started Michigan Motion Picture Studios, doing business as Raleigh Michigan Studios, for $75.8 million…After looking at about 100 abandoned buildings, including an airplane hangar, the Pontiac Silverdome (the former home of the Detroit Lions football team) and vacant auto plants, Mr. Nelson and his partners chose a location within a former General Motors complex in Pontiac….The three-story, 369,000-square-foot building was built in 1999 for $55 million, and 3,000 G.M. truck and bus engineers once worked there. Raleigh’s goal is for a similar number of people to be employed at a range of film industry jobs.

As a former resident of Michigan, it is uplifting to hear that this approved bill is having a positive impact so far.  Even excluding the recent collapse of the auto industry, Michigan’s primary means of business in manufacturing has been in decline the past thirty years.  More tax incentives such as these will need to continue to be passed to help bring additional types of business to the state and help reduce the unemployment rate that was 15% as of July.

Michigan is a beautiful state with some of the nation’s best produce, universities, and landscapes that change with each season.  While it’s a great place to visit, there is definitely a need to create more jobs so visitors can become full time residents.  It will be interesting to see what films come out of the state.  Possibly they might even create a film festival to help bring more tourism into the state.