Film Industry Experts Say Expanding State Incentives is 'Right Thing to Do'

The mood was optimistic Saturday morning as a panel of film industry experts discussed the status of the Michigan film industry, held as part of the second annual at the .

Made of up industry experts from Hollywood to Lansing, the panel discussed the state's new incentive for filmmakers, why it works, how it can improve and why the rumor that Hollywood has turned its back on Michigan is wrong.

"My colleagues in LA thought it was over in Detroit," said Peter Nelson, a filmmaker and producer who worked on the made-in-Detroit film, Sparkle. "We need to clear up those misconceptions."

Sitting alongside Nelson at the early-morning panel was Carrie Jones, director of the Michigan Film Office; Sen. Randy Richardville (R-17th District), majority leader in the Michigan State Senate; Steve Lemberg, CFO of the Pontiac-based Raleigh Michigan Studios; and Patty Kahn, a CPA for Kahn & Company.

Top of mind for all the panelists, and many of the two dozen or so in attendance, was the recently reconfigured tax incentives for filmmakers who want to make films in Michigan. In the 2012-13 state budget, under the direction of Gov. Rick Snyder, only $25 million has been allocated to be distributed as film incentives. 

According to MLive, Michigan approved $361.1 million in film tax credits from the program's inception in April 2008 through March 2011.

Jeffrey Spilman, co-executive producer of the Uptown Film Festival as well as the founder and managing partner of the Ferndale-based S3 Entertainment Group, said the mood in the Michigan film industry has been dour since the incentives were capped at $25 million a year in 2011. 

However, Richardville said there's movement in the Michigan legislature to increase the film budget in upcoming years and he's "doing everything" he can to change traditional conservative notions of economic return when it comes to the film industry.

"We are forming a budget now that would put $100 million toward this," Richardville said. "We will be fighting and I intend to win."

Richardville said Snyder has entered office with the idea that the film industry should be able to take care of itself, however Richardville said the film incentives program is about more than numbers — it's about what's good for Michigan.

"(The film industry has) brought infrastructure, investment, people who want to work here," he said. "There's an excitement I haven't seen in my lifetime."

According to Jones, even though the Michigan Film Office now has fewer funds to work with, they're still optimistic about the new incentives.

"We're really excited about the new program," she said. "We think it has a lot of potential."

According to Jones, there have been eight applications for the tax incentives since the film office began accepting them on Jan. 9. Those applications are currently under review for their financial viability, how well the projects utilize existing infrastructure, whether Michiganders will be hired and how well the films promote Michigan tourism.

Jones said the film office has been aggressive in seeking out filmmakers and projects. "We're letting them know we have world-class infrastructure, talented people, a beautiful place to film and more."

Ultimately, Nelson said for Michigan's film industry to survive, it must work to clarify its incentive program so that filmmakers from around the country know what they need to do to begin making movies in Michigan.

"There was a lot of uncertainty last year," he said, "and you're dealing with the consequences of that. But if you keep it around, people will come around."

Richardville agreed, and said the first step — for him, at least — is convincing lawmakers and Michigan residents that the film industry is important.

"We need to be creative and explain things not only from the financial conservative perspective, but why it's the right thing to do," he said.

The Uptown Film Festival continues with films all day today at the Palladium and (check out for today's line-up). The event wraps up with the third annual at 9:30 p.m. at the Palladium.

Catch up with Birmingham Patch's coverage of the 2012 Uptown Film Festival by checking out all the stories we've published at Uptown Film Festival 2012. Then, stay tuned with Patch's coverage all weekend long at our Facebook page and by following us on Twitter.