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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Comments

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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quiknkoldhttp://www.pastemagazine.com/articles/2014/10/femme-doms-of-videogames-bayonetta-doesnt-care-if.html10/30/2014 - 1:15pm
quiknkoldIf he calls himself the Effing Robot King, I can die happy10/30/2014 - 1:14pm
Michael ChandraAlso, yay for him being Ultron. :D10/30/2014 - 1:08pm
Michael Chandra"We become who we are. You can’t judge a book by its cover, but you can by its first few chapters. And most certainly by its last."10/30/2014 - 1:07pm
prh99""We are what we repeatedly do..."10/30/2014 - 12:30pm
Andrew EisenI would, however, call someone who routinely kills time by playing random games on their phone a gamer.10/30/2014 - 12:15pm
E. Zachary KnightMatthew, AE, Yeah, that is why I have a hard time understanding critics of Sarkeesian. I look at her videos as a Feminist review of video games, but for some reason, others look at them as personal attacks.10/30/2014 - 12:01pm
E. Zachary KnightDefinitely a good answer. That is the way I lean. If you actively chose to stop gaming, or just stopped out of habit, then yeah, you are no longer a gamer.10/30/2014 - 11:45am
Matthew WilsonAE i agree, but it is worth pointing out the fact that that is whats happening.10/30/2014 - 11:45am
quiknkoldbehavior to warrant having a Title that doesnt involve a piece of paper.10/30/2014 - 11:43am
quiknkoldwaiting in line. Thats not being a Gamer. Thats akin to me reading a Pamphlet in line and calling myself an active reader. or watching a movie trailer on a tv in walmart and calling myself an active movie goer. There has to be some form of repetitive10/30/2014 - 11:42am
quiknkoldbeing A Gamer is a Conscious decision. I am consciously engaging in this form of media and showing some form of enthusiasm. The only person I Wouldnt call a gamer is somebody who has a random game on their phone just to kill 5 minutes cause they are10/30/2014 - 11:41am
E. Zachary KnightSo how much time must pass since the last time you played a game before you are no longer a gamer?10/30/2014 - 11:33am
Andrew Eisen"Plays" is present tense so the clarification doesn't seem necessary to me.10/30/2014 - 11:18am
quiknkoldI would change that from "One who plays games" To "One who currently plays games". Like my friend as a kid playd games but then he stopped and hasnt for the last decade+ so I wouldnt call him a Gamer.10/30/2014 - 11:16am
Andrew EisenHmm, that sounds like a great idea for a series of articles! I bet they'd be well-received and not taken the complete wrong way at all!10/30/2014 - 11:12am
Andrew EisenThat's right, gamer simply means one who plays games. That's it. The idea that "gamer" refers to something very limited and specific, well, that's no longer applicable in this day and age of mainstream gaming.10/30/2014 - 11:12am
Andrew EisenMatthew - As I said last night, that is not a bad thing. Different types of reviews to serve different interests is a GOOD thing and should be encouraged! There is not, nor should there be, only one way to review a game or anything else.10/30/2014 - 11:01am
ZippyDSMleeAnyone see this? http://www.dailykos.com/story/2014/10/29/1339617/-Cartoon-Gamergate-Contagion-Spreads?detail=facebook10/30/2014 - 10:55am
E. Zachary KnightNeeneko, Matthew, yeah, there is no "wrong" way to review a game. It all depends on who the reviewer wants reading the review.10/30/2014 - 10:48am
 

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