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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WonderkarpI'm addicted too their deals :P When I find an alternative, I'll drop Kotaku :P. you Tease cause you care though :)11/26/2014 - 11:57am
Andrew EisenWarning, light teasing incoming. Ahem. So, not only could you not go a full four hours without reading The Ralph Retort, but you read Kotaku? A site you say you're actively trying to convince others to stay away from? Wow!11/26/2014 - 11:56am
Wonderkarpi love nintendo <311/26/2014 - 10:27am
MaskedPixelantehttp://www.siliconera.com/2014/11/26/pokemon-omega-rubyalpha-sapphire-sold-3-million-worldwide-three-days/ More good Nintendo news that I can't wait to be turned into "NINTENDO IS DOOMED" articles by certain outlets.11/26/2014 - 10:03am
Wonderkarpthough its kinda ironic, as this cartoon shows. https://pbs.twimg.com/media/B3XCIeQCUAAWWkv.jpg cause I thought it was about wanting more women in games?11/26/2014 - 9:39am
Wonderkarphuh. thats weird... http://steamcommunity.com/sharedfiles/filedetails/?id=34087710511/26/2014 - 9:37am
Wonderkarpyeah. even being pro gg, I still dont boycott. Its stupid. I still go to Kotaku. Though I have a BS filter up. But I am addicted to their deals. 11/26/2014 - 9:36am
MaskedPixelanteI dunno, it looks like a Modern Warfare clone. Probably because the link you posted links to a screencap from Modern Warfare 2.11/26/2014 - 9:34am
james_fudgeI think boycotts arer wrong, almost always..11/26/2014 - 9:33am
WonderkarpI voted for it. looks cute. wish it was on ipad11/26/2014 - 9:30am
WonderkarpAntiGG people on twitter are calling for a boycott of an Indie game created by somebody on the "Blocklist". telling people not to vote for it on Steam Greenlight. Its a cute game about plants! http://steamcommunity.com/sharedfiles/filedetails/?id=3408771011/26/2014 - 9:22am
NeenekoWhich ties into a rather vicious cycle of mutual distrust.11/26/2014 - 8:28am
E. Zachary KnightNot really a suprise, but race correlates heavily with how one views the cops. http://reason.com/blog/2014/11/25/polling-finds-a-stark-racial-divide-in-p11/26/2014 - 8:22am
Matthew Wilsonalso, it looks like sony finally got a clue http://www.vg247.com/2014/11/26/sony-comes-to-senses-at-last-admits-playstation-is-going-to-save-it/11/25/2014 - 10:56pm
Matthew WilsonI wont say them, but there are other sites beyond youtube. it was a good move by HBO.11/25/2014 - 10:55pm
Papa Midnighthttp://www.pcgamer.com/dark-souls-to-move-from-gfwl-to-steam-a-month-later-than-expected/11/25/2014 - 10:30pm
Papa MidnightMatthew Wilson: Considering ContentID, I can't imagine that would necessarily be a problem for HBO.11/25/2014 - 10:19pm
Matthew Wilsonthey know if they dont, someone will.11/25/2014 - 8:40pm
Sora-ChanIt's a HBO show, which to be honest, considering it's HBO, it's actually surprising they even put any up on youtube.11/25/2014 - 8:36pm
Andrew EisenI imagine they hope the clips they do host (some of which are rather long) are enough to entice viewers to watch the show on whatever channel it airs on.11/25/2014 - 5:54pm
 

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