Michigan film incentives have created the most lucrative film production tax incentives program and infrastructure development in the United States and the world. Rather than a sellable film tax credit, Michigan offers a cash rebate!

 2008 MICHIGAN FILMING INCENTIVES IN A NUTSHELL:

Must spend at least $50,000 in Michigan.

40% cash rebate on Michigan expenditures.

Claim an extra 2% if filming in one of the 103 Core Communities in Michigan.

Labor and Crew:
40%-42% Resident Below the Line.
40%-42% Above the Line regardless of domicile.
30% Non-resident Below the Line.

$2 million salary cap per employee per production.
There is no other cap and no sunset.

Learn more at the Michigan Film Office.

By JEANNE KNIAZ

Ray and Duane Gross, formerly of Memphis, have recently launched Gross Brothers Productions, a Michigan-based writing production company to get a foothold in film industry enterprises that are flourishing since the state passed a film incentive legislative package.

Marlon Brando’s classic lament in the 1954 film “On the Waterfront,” in which he utters “I coulda been a contender,” is one claim Michigan won’t make as it competes with 14 states for the lucrative yields connected with the film production industry.

Two men who grew up in Memphis have had a front row seat as the curtain has risen on the state’s movie making prospects in the past year. What they have seen could be a mere preview of what is to come.

I’ll make him an offer he can’t refuse — “The Godfather”
Last April, a comprehensive film incentive package was signed into law by Gov. Jennifer Granholm. Backed by the state House and Senate, it aimed to help stimulate the economy and employment outlook in Michigan.

The package provides inducement by way of tax credits for the creation of movie, television and digital media productions, infrastructure projects and local labor forces.

A refundable, transferable tax credit of up to 40 percent of specific production company costs expended while making movie or media entertainment projects in Michigan is offered, with another 2 percent available if the project is produced in one of over 100 designated core communities, urban districts or traditional centers of commerce situated around the state.

A 25 percent tax incentive is offered for infrastructure investments involving building construction or facility expansion pertaining to film or digital media projects.

Show me the money — “Jerry Maguire”
According to the Michigan Film Office 2008 annual report released last month, 136 applications last year resulted in 71 approved projects and 35 completed productions consisting of feature films, documentaries and television and animated productions.

Since the enactment of the legislation, Michigan film-related expenditures increased from $2 million in 2007 to over $100 million last year, and projects that spanned from Traverse City to Center Line resulted in roughly 2,800 Michigan jobs.

I’ll be back — “The Terminator”
This famous phrase is one economic developers hope film producers will echo.

A report issued by the Center for Economic Analysis at Michigan State University estimates total production expenditures in the state will increase 187 percent by the year 2012.

To date, the Michigan Film Office has approved 70 projects for 2009 including the hockey flick “The Genesis Code” and “Betty Ann Waters” starring Hillary Swank.

If you build it, they will come — “Field of Dreams”
Prospective projects include film studio and production company development by Motown Motion Pictures in Pontiac; advancements in computer-generated visual effects and animation by Wonderstruck Studios — a Detroit Center Studios affiliation; and a new PC game plus expansion of its facilities by Stardock Systems Inc. in Plymouth Township.

Warren resident Ray Gross and his brother Duane — both Memphis High School graduates — admit to being bitten by the film industry-bug.

“I started writing screenplays when I was about 20,” Ray, 45, said.

“My grandmother was an actress living in Australia so when we were growing up we would always hear stories about her life and the glamour and everything going on over there, so it was kind of in our blood, I think, to get involved. Duane didn’t start screenwriting until a few years back as he was in Australia for awhile working as an actor.”

Duane, 42, is currently working with actor Jon Seda, who hopes to produce Duane’s spec screenplay “The Lost Disciples”.

Ray, owner of StoryPromos — a media and marketing solutions company that features low-cost Internet promotion — is developing his own spec screenplay in conjunction with Pierce Williams Entertainment entitled “Dream Girl,” a psychological thriller based in Michigan.

The two brothers recently teamed-up to launch Gross Brothers Productions — a writing production company.

“We provide writing services for the industry. It starts out as a spec screenplay … and then you push it to film production companies and if they have an interest in it, they option it, acquire it or start working to help develop it. Then they try to package it and if they produce it they get a director and some actors, and then try to get financing,” Ray said of the film-making process.

The brothers have high hopes for the future of the film industry in Michigan.

“We are excited about Michigan now, obviously, because of the film incentives. There seems to be a lot more activity brewing in the area. I think it’s an ideal time for Michigan to take off in the industry and there are lots of people waiting in the wings to get involved.

You can use Hollywood as a benchmark of what may happen and, yeah, it is wide open as far as what can be developed here locally,” Ray said.

It’s better to be looked over than overlooked — “Belle of the Nineties”
One way production dollars from film companies trickle down into the state’s economy is by way of fees paid to private property owners for use of location sites.

The Michigan Film Office is seeking property owners to list and a call for rural sites is being trumpeted throughout Macomb and St. Clair counties.

“The response has been wonderful,” Tony Garcia of the Michigan Film Office said.

“Right now we are working with a particular project that is in need of horse farms, equestrian sites and that type of layout so we have sent them details as to a number of pieces of property in Macomb.”

Maria Zardis, Grants and Special Projects Coordinator for Macomb County’s Planning and Economic Development Department, said a number of possibilities exist within that county’s borders.

“There is no question about that. We know that we have some gritty urban areas, some very high-scale neighborhoods and beautiful rural countryside to offer. We are on 31 miles of Lake St. Clair shoreline — which can look like the ocean in a movie, and we also have a number of other waters and streams. I think the combination of the urban environment coupled with that more natural setting means that, within 30 minutes, Hollywood could shoot any number of backgrounds,” she said.

A Web site, FilmMacomb.org, has been designed to highlight the county’s many characteristics.

“What we are trying to offer through this centralized Macomb County Film Office is an expedited system for getting into a location and making those arrangements very smoothly. That is what we are looking to do,” Zardis said.

St. Clair County residents can find forms by clicking on the MFO Movie Announcement at the msue.stclaircounty.org/Ag/Default.aspx website.

Go ahead, make my day — “Sudden Impact”
Actor Clint Eastwood made the day of many Macomb County residents last summer when he filmed “Gran Torino” at sites around the state that included a Center Line VFW hall where he took time out to pose for a photo with Mayor Mary Ann Zielinski.

“It was quite a memorable experience,” she said, “and you better be ready when they come into town. I mean it is a parade. They had about 40 big semis that they brought. I talked with one trucker … and he said that they showed up at the Teamsters local he belonged to where they hired several guys. After the shooting they put on a fabulous spread. I found out that all their food, fresh produce and everything, is bought locally. They were all staying at one of the ritzier hotels in Troy and must have used a couple of dozen rooms so that hotel profited. The fuel they bought was purchased locally at our gas stations. Any incidentals … snacks, meals or things of that nature were bought from nearby stores and restaurants and that was very satisfying because I was very skeptical as to whether or not there was any benefit,” she said.

There’s no place like home — “The Wizard of Oz”
From a chair inside her home in Fort Gratiot, Kathy Popelka has honed her hobby of taking photos of nature scenes outside her window. She never dreamed her work might, one day, help attract jobs.

“I became disabled back in 2005 and I was the type of person who worked, probably, 60-hour weeks so it has been very difficult for me not to work. I have always loved photography but it is one of those things that you do when you can. We live in an area where there is actually some wild life and, in order to keep from losing my mind, I started taking pictures through the door wall,” she said.

Popelka eventually forwarded photos to the state’s picture gallery on the Internet but was recently surprised to learn that her photos can be viewed by clicking on the “location photos” link at the Michigan Film Office Web site where they may help attract film industry business to the area.

Photos of bridges, buildings, country scenes, recreation sites, shorelines, urban landscapes and more are available for perusal at that site.

“I guess I am just really shocked,” she said, “because I never expected my photos to end up there.”

For further details about opportunities related to film industry production prospects within the state visit the Michigan Film Office website at michigan.gov/filmoffice.

Jeanne Kniaz is a freelance writer. She can be contacted at jeannestory@hotmail.com.