Michigan Governor Targets Entertainment Industry Tax Breaks

February 21, 2011 -

Michigan Governor Rick Snyder has proposed a new budget that severely limits the amount of tax bonuses to game developers and other entertainment enterprises that want to operate out of the state. Under the new budget, tax rebates that currently cover up to 42 percent of an entertainment company’s tax expenditures would be limited to an annual cap of $25 million.

The tax incentive program was introduced in 2008 to much fanfare. Since that time nearly 130 entertainment projects have received an estimated $648 million in tax savings. The governor is targeting the tax incentive plan to make up for a $1.4 billion budget gap. He claims that lower corporate tax rates for all companies would probably be a better idea for the state and for companies in general.

Late last year a $2.7 million Ben Hogan-endorsed Wii golf game project from Pixofcator Entertainment was the first video game to qualify under the incentive program. That deal would obviously be affected by this new budget proposal. Pixofactor's Sean Hurwitz tells the Associated Press that his company won't be the only one in Michigan that will feel the repercussions of this budget proposal if it passes.

"We recently had a visit from one of the top three largest video game publishers in the world, and they're looking to bring tens of millions of dollars' worth of business to us and to Michigan," Hurwitz told the AP. "There won't be any of that work without the incentive."

Of course, proposals are not laws, and it must make it past both houses of the state before it can become the rule of the land.

Source: Gamasutra

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Re: Michigan Governor Targets Entertainment Industry Tax ...

This is a very confusing story to follow.

Depending on which paper I read about it from, he is either cutting buisness tax breaks to almost nothing, or giving 1.8 billion in new tax breaks while cutten breaks for seniors, schools, and key industries.

(ah, I think I found an explination.  Personal taxes will be decreased, and corperate taxes below a certain amount will be removed completely, but the elderly will be paying a much higher tax amount)

1.4 Billion shortfall

1.2 Billion in savings.

1.7 Billion in new revenue from seniors, low income people, and deductions related to school.

1.8 Billion in new tax breaks for corperations.

 
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Andrew EisenI'd love to but I'm at work. But once I get home... I'm going to work out for a while. But after THAT... I'm going to shower. Then eat. Then prep tomorrow's meals. And THEN play video games! YEAH!!!07/31/2015 - 8:38pm
Big Permlol, ya'll are still going back and forth? Take a break and play some video games07/31/2015 - 8:37pm
Andrew EisenGoth - Are you using "cabal" to describe a group of writers or to suggest they all worked together in secret to publish those articles?07/31/2015 - 8:30pm
Andrew EisenMatt - That doesn't disprove the general premise of the various articles as that's not what they're about. Unless, again, he's talking about a different batch of articles.07/31/2015 - 8:28pm
Goth_SkunkThe difference between one voice being offensive and a cabal being offensive.07/31/2015 - 8:22pm
MechaCrashFunny how "you're offended, so what" flips into "we're offended, retract everything and apologize."07/31/2015 - 8:18pm
MattsworknameIts not the only argument he points out ,its just one of them07/31/2015 - 8:06pm
Mattsworknameidea that Gamers as the articel puts it, the "White male sterotype are dead, essentially was compltely false07/31/2015 - 8:03pm
MattsworknameThe video actually shows that the shaw study actually disproves the Premise of the artices by showing that the "Gamer" dentity, has no actual meaning to thsoe who use it other then "I play games", its not connected to race, gender, or orientation. So the07/31/2015 - 8:01pm
Andrew EisenWith the exception of a brief mention in Golding's Tumbr post. Even so, he's talking about gamer identity, not desire for diversity in gaming.07/31/2015 - 7:50pm
Andrew EisenI'm not calling his examination of the Shaw study into question. I haven't read the study nor seen his video. All I'm saying is that it has nothing to do with the Gamers Are Dead articles I've been referencing for the last year.07/31/2015 - 7:49pm
MattsworknameSome times sargon just goes off on tangents but in this case he was pretty direct and went through teh research in detail, did the whole first video about the shaw study itself07/31/2015 - 7:45pm
Andrew EisenWell, unless it's disingenuous twaddle but I like to give people the benefit of the doubt.07/31/2015 - 7:42pm
Andrew EisenGotta be. The argument you describe makes no sense otherwise.07/31/2015 - 7:40pm
MattsworknameThat is a possibility, they looked like offical articles but its possible they are different from the articles you mentoin07/31/2015 - 7:28pm
Andrew EisenNot unless he's referring to a completely different set of Gamers Are Dead articles.07/31/2015 - 7:19pm
MattsworknameIT is possibel the articles aren't readily visable or no longer show up on the sites diretly, as over time they might have been shuffled around to get them outta teh spot lights07/31/2015 - 7:18pm
MattsworknameThe video proves otherwise andrew, the links to shaws research are in the articles themselves07/31/2015 - 7:17pm
RedMageAs someone who writes extensively himself, I can see when writing has been influenced by boiling anger from a mile away.07/31/2015 - 7:12pm
RedMageI also didn't see Leigh Alexander's original article as an attack on gamers; it was just poorly written. She'd likely had a terrible day and was projecting the activities of gaming's vicious fringe onto "gamers" collectively, however you describe that.07/31/2015 - 7:11pm
 

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