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Housing Expenses Among the Perks Michigan Residents Pay for Big Hollywood
Capitol Confidential ^ | 3/4/2014 | Tom Gantert

Posted on 03/11/2014 7:03:51 AM PDT by MichCapCon

When Jennifer Garner told a Detroit radio station that she and her husband Ben Affleck would spend the summer in Detroit while Affleck was working on the Batman-Superman blockbuster, it made national news.

MLive gushed: "If you love trying to track down celebrities in Detroit, then you'll want to be on the lookout in the coming months for one of Hollywood's biggest power couples."

What wasn't reported is that Michigan taxpayers could pay part of the rent for the Hollywood power couple's stay in the state. Affleck has made $10 million or more eight times for acting in a movie, according to the Internet Movie Database.

The Superman-Batman movie was awarded a film incentive of $35 million in August by the Michigan Film Office for a projected $131 million of in-state expenditures.

Michelle Grinnell, spokeswoman for the Michigan Film Office, said living expenses can be covered, but whether Affleck or the production company would get reimbursed for any costs for living in Michigan depends on the actor's contract with the production company.

"And our office does not get involved with those contracts," Grinnell said. "In cases where it may qualify, it would count toward the $2 million cap on eligible compensation per employee written into the statute. Expenses incurred moving possessions would not qualify."

The Michigan Film Office lists housing as an eligible expense for reimbursement under its FAQ for producers.

Many films in Michigan have spent millions in expenses on housing as part of the overall costs that are reimbursed by state taxpayers.

The movie, "Oz: The Great and Powerful," had $5.2 million in lodging expenses in 2010 as part of the $104.8 million spent in Michigan. That movie received $39.8 million in tax dollars for film incentives and paid for some housing costs.

Leon Drolet, chairman of the Michigan Taxpayers Alliance, said he hopes Affleck's summer stay in Michigan wouldn't be put on the tab of the taxpayers.

"If that were to happen, it would transform him from playing Superman to playing the Joker with the butt of the joke being on the taxpayers," Drolet said. "The real villains here are the legislators who continue to force taxpayers to subsidize Hollywood stars and studios."

The state spent $50 million in 2013 on the film incentive program. Gov. Rick Snyder attempted to slash that $50 million budget in half in his 2015 budget proposal. The governor and House Republicans tried to end the program last year, but Senate Republicans managed to ensure that it continued.

The film incentives pay qualified production companies up to 32 percent back on in-state expenditures. The incentive adds an extra 3 percent if the filming is done in one of Michigan's qualified production or post-production facilities. From 2008 to 2011, the film incentive was as high as 42 percent.

Film incentive programs have been slammed by economists from the conservative Tax Foundation, the liberal Center on Budget and Policy Priorities, and the Senate Fiscal Agency in Michigan, which found a return of only $13.5 million on $125 million spent for 2010-11. The Senate Fiscal Agency also reported that nearly half of the credits were spent out of Michigan, with no discernible effect on the state economy.

Crown City Pictures did not respond to a request for comment asking if they would request lodging costs to be reimbursed by the state.


TOPICS: Business/Economy
KEYWORDS: film; hollywood

1 posted on 03/11/2014 7:03:51 AM PDT by MichCapCon
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To: MichCapCon
Detroit area has many vacant mansions from the heyday of the auto industry.
2 posted on 03/11/2014 7:14:24 AM PDT by scooby321
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To: MichCapCon

who did they make mad? A summer in Detroit sounds like a sentence not a choice


3 posted on 03/11/2014 7:16:34 AM PDT by yldstrk ( My heroes have always been cowboys)
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To: MichCapCon

I want to know if there’s any kind of return on investment for Michigan tax breaks for film making?


4 posted on 03/11/2014 7:20:20 AM PDT by DouglasKC
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To: MichCapCon

My biggest problem with this whole deal is that Ben Affleck is playing Batman. That just ain’t right


5 posted on 03/11/2014 7:23:32 AM PDT by be-baw (still seeking)
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To: MichCapCon

This is a crap article trying to pit the haves vs. the have nots.

States do this to get big money into their state and improve the tax base overall.


6 posted on 03/11/2014 7:24:26 AM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
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To: MichCapCon

I thought Hollywood used to pay for shooting a movie in a community.


7 posted on 03/11/2014 7:28:35 AM PDT by stars & stripes forever (Blessed is the nation whose God is the Lord.)
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To: for-q-clinton
States do this to get big money into their state and improve the tax base overall.

LOL when did this magic start happening? The program has been rife with fraud and waste since the day Jenny Granholm instituted it.
8 posted on 03/11/2014 7:32:36 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: DouglasKC

No.

Its amazing how many states have bought into the “entertainment incentive” scam. Between starstruck politicians and starstruck citizens its a surprisingly easy sell.

Tax breaks are great but they shouldn’t go specific industries, they should go to all.


9 posted on 03/11/2014 7:39:21 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: stars & stripes forever
Michael Moore's next movie should be called "Hypocrisy, a personal story".

Michael Moore and Subsidies: A Love-Hate Story

"These are large, multinational corporations — Viacom, GE, Rupert Murdoch — that own these studios. Why do they need our money, from Michigan, from our taxpayers, when we're already broke here? I mean, they play one state against the other, and so they get all this free cash when they're making billions already in profits. What's the thinking behind that?" Moore asked.

Moore's own Web site has a February 2009 story announcing that Paramount Vantage, a subsidiary of Viacom, and Overture Films co-financed "Capitalism: A Love Story." Overture Films is a division of Liberty Capital, which is a 1-percent shareholder in Viacom, which posted a $463 million profit in the third quarter of 2009.

In one of the more popular scenes in the movie, Moore stands with a bag in front of a Wall Street bank and says, "We want our money back."

Yet Moore's image as a Robin Hood for the downtrodden has been tarnished since it was reported last week that his anti-capitalism movie may receive $1 million in tax credits, subsidized by Michigan taxpayers.

10 posted on 03/11/2014 7:47:25 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: be-baw

My biggest problem with the whole deal is that adults actually go to see movies about characters that were just in children’s comic books when I was a young girl.


11 posted on 03/11/2014 9:24:22 AM PDT by Bigg Red (1 Pt 1: As he who called you is holy, be holy yourselves in every aspect of your conduct.)
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To: Bigg Red
My biggest problem with the whole deal is that adults actually go to see movies about characters that were just in children’s comic books when I was a young girl.

i love comic books. Ma taught me how to read via Little Lulu comic books before I was even in kindergarten. And I think superheroes are great. My favorite movies are about people who excel and are devoted to righting wrongs. DC's movies (Superman and Batman) have been mixed, but Marvel's (Iron Man, Thor, Captain America and The Avengers) have been mostly terrific I'm not ashamed to say I was, to a large degree, raised by superheroes. With great power comes great responsibility...

12 posted on 03/11/2014 9:47:42 AM PDT by be-baw (still seeking)
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To: DouglasKC

Absolutely not: http://www.michigancapitolconfidential.com/18456


13 posted on 03/11/2014 10:22:35 AM PDT by MichCapCon
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