A new report says Michigan's aggressive tax incentive program for the movie industry is not a good deal for the state budget.
The nonpartisan Senate Fiscal Agency report released Friday says about $37.5 million in credits during the 2008-09 fiscal year reflected nearly $98 million in private spending. But nearly half of the spending left Michigan and didn't contribute to economic activity in the state.
The report estimates the additional economic activity sparked by the credits raised less than $4 million in additional tax revenue for the 2008-09 fiscal year.
The credits have created some jobs and publicity for Michigan but at a high cost.
The Michigan Film Office was expected to respond to the report later Friday.
(Copyright 2010 by The Associated Press. All Rights Reserved.
for more features.