HomeMy WebLinkAboutResolutions - 2011.03.24 - 16683Miscellaneous Resolution #11065
BY: Commissioners Tim Greimel, District #11, Jim Nash, District #15,N)arcia Gers4nson, District #17,
Dave Woodward, District #18, and Craig Covey, District #25 /
RE: Board of Commissioners Resolution in Support of Michigan's Film and Television Tax Credits
& in Support of Extending Credits to the Production of Television Advertisements
TO: Oakland County Board of Commissioners r://44- y Ae/c6tiffe,,, , rt4
Chairperson, Ladies and Gentlemen:
WHEREAS, Michigan's legislature enacted film production tax credits in April 2008; and
WHEREAS, the enacted legislation provides a refundable tax credit equal to 30% to 42% of qualifying
production expenses incurred during the production of films and television series in Michigan; and
WHEREAS, the film production tax credits are designed to grow Michigan's economy, to create jobs, and to
increase the income earned by Michigan's residents; and
WHEREAS, according to an analysis released by Ernst & Young in February 2011, Michigan's film and
television productions qualifying for the credits generated a total economic impact of $309.3 million in 2009
($119.1 million in direct impact, plus another $190.2 million in indirect impact) and a total economic impact of
$503 million in 2010 ($191.4 million in direct impact, plus another $311.7 million in indirect impact); and
WHEREAS, according to the Ernst « Young analysis, Michigan's film and television productions qualifying for
the credits created 2,631 total jobs in 2009 (797 full-time equivalent jobs hired directly by the production
companies and an additional 1,834 jobs created through indirect economic benefits) and 3,860 total jobs in
2010 (1,039 full-time equivalent jobs hired directly by the production-companies and an actditional 2,822 jobs
created through indirect economic benefits); and
WHEREAS, according to the Ernst & Young analysis, film and television productions qualifying for the credits
increased the incomes of Michigan residents by a total of $108.9 million in 2009 ($42.8 million in wages and
salaries paid directly by the production companies and an additional $66.2 million generated indirectly by
hotels, suppliers, restaurants, and other Michigan businesses as a result of the production activity) and by a
total of $172.5 million in 2010 ($66.9 million in wages and salaries paid directly by the production companies
and an additional $105.6 million generated indirectly by production activity); and
WHEREAS, according to the Ernst & Young analysis, the net budgetary cost of Michigan's film tax credits to
state and local governments was only $14.1 million in 2009 and only $28 million in 2010; and
WHEREAS, Governor Rick Snyder has proposed greatly reducing Michigan's film tax credits; and
WHEREAS, Oakland County Executive L. Brooks Patterson and Oakland County Treasurer Andy Meisner
have both publicly opposed Governor Snyder's proposed reduction of the film tax credits;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby opposes
any reduction in Michigan's film and television tax credits and urges the state Senate and state House of
Representatives to preserve them.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby requests that the
state Senate and state House of Representatives amend the current film tax credit law to explicitly provide that
the production of television advertisements shall receive state film tax credits to the same extent that film
production receives such credits.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners requests that the Oakland
County Clerk send copies of this resolution to all members of the Michigan Legislature and to Governor Rick
Snyder.
Chairperson, we move the adoption of the foregoing Resolution.
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Resolution #11065 March 24, 2011
The Chairperson referred the resolution to the General Government Committee. There were no objections.