The Michigan House of Representatives today voted 58 to 51 to pass legislation that would end the state's film incentive program.
HB 4122, sponsored by Rep. Dan Lauwers, would put a stop to the incentives starting Oct. 1, 2015.
In a mostly partisan vote, Democrats voted against the bill and Republicans voted for it.
Rep. Jeremy Moss, D-Southfield, said the film incentives were creating good jobs.
"These jobs are highly sought after, well-paid, and individually rewarding positions," Moss said.
Rep. Kristy Pagan, D-Canton, pointed to less tangible benefits as well.
"There is also the cool factor. Who doesn't want to see Ben Affleck or Amy Adams walk down our streets?" Pagan said.
But Republican members spoke in favor of the incentive elimination plan. Rep. Ed McBroom, R-Vulcan, said the program has not benefited members of his Upper Peninsula district. He's heard from people who say that they'd rather spend the $50 million a year on things like roads.
"Let's move the money to where we need it to be, and let's make this part of the start in going after this idea of corporate welfare that we all know has been a bad idea for the state for a long time," McBroom said.
An amendment from Rep. Tom Barrett, R-Potterville, specified that any leftover money from the program would go toward repaying film facility losses incurred by the state's retirement system. The state secured the debt on a bond for a film studio in Pontiac.
According to Michigan Department of Treasury spokesperson Terry Stanton, the State of Michigan Retirement Systems paid a total of $1.68 million in 2012 and 2013 because they had guaranteed financial backers of the studio.
"The Public Employee Retirement System Investment Act (Act 314 of 1965) was amended under the current administration, so no Michigan public pension funds can make such guarantees in the future," Stanton said.
Barrett said today he was opposed to the incentives overall and favors a level playing field.
"I think it's unfair to take tax dollars out of my district that hardworking families pay and budget for each and every day and take that money into the state treasury and then pay out rich Hollywood film producers to make movies here in Michigan," Barrett said.
For this bill to become law and the film incentives to be eliminated, it would first have to pass the Senate and be signed by Gov. Rick Snyder. Senate Majority Leader Arlan Meekhof, R-West Olive, has expressed concerns. Snyder said Tuesday he'd favor a gradual ramping down of the credit over an abrupt elimination.
