Tuesday, January 23, 2007

GR Press Incentives Article

MOVIE MOGULS IN MICHIGAN
Friday, January 19, 2007

Michigan made its fame on the motorcar, but movies can offer the state a different brand of stardom. New tax breaks for film makers, which go into effect this year, will help draw producers, actors and directors -- and the considerable economic activity they generate -- to locations as diverse as Detroit and Grand Haven. But incentives alone won't do the work. The state's film office, overseen by Janet Lockwood, should now aggressively market these sweeteners to Hollywood moguls searching for a different backdrop.

This legislative magnet for the celluloid set is the handiwork of state Rep. William Huizenga, R-Zeeland. Mr. Huizenga shepherded the incentives through the Legislature, despite setbacks and challenges, earning him the nickname "Hollywood Huizenga." Future film makers who find reduced production costs on the shores of Lake Michigan or some urban mean street owe Mr. Huizenga a credit.

So do state residents. Movies are big business, and they generate spin-off economic activity that benefit construction trades, restaurants, hotels and others in a local community where filming occurs.

Allegan and Ottawa counties saw that potential six years ago when actors Tom Hanks and Jude Law, along with a crew from DreamWorks Pictures, came here to film the final scenes of "The Road to Perdition." Their community cameo poured hundreds of thousands into lakeshore tills and ledgers.

The incentives, which took effect two weeks ago, will give a 12 percent to 20 percent production cost tax rebate when $200,000 to $10 million is spent. The total the state will forgive is capped at $7 million a year. The legislation sunsets in 2011.

If experience in other states is duplicated here, lawmakers may want to renew the incentives at that point. Four years ago, Louisiana began offering incentives and watched the film industry's spending skyrocket from $12 million in 2002 to nearly $600 million in 2006.

Michigan beaches hold at least as much appeal as Louisiana bayous. But right now, feature-film spending in Michigan is about at $2 million a year. The state has lost business because it has, until this legislation, not offered competitive incentives. The Golden Globe winning picture "Dreamgirls" considered and rejected Michigan because the state lacked lures. Pitching Michigan as a film setting can't stop with tax breaks. Other states are in the hunt and either pursuing or offering similar incentives. Michigan has to sell itself aggressively as it competes for its piece of Tinseltown.

Those two steps together can realize Mr. Huizenga's vision of increased money and exposure for the state. When that happens, Mr. Huizenga will deserve a standing ovation for his leading role.

©2007 Grand Rapids Press

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