New provisions include tax incentives to creative companies
DETROIT, May 5 /PRNewswire-USNewswire/ -- Southeast Michigan's creative
business community will get a boost as a result of Governor Granholm's
signature on a series of bills that would make creative businesses eligible
for state MEGA tax credits.
Signed into law yesterday, Public Act 108 of 2008, sponsored by Senator
Jud Gilbert (R-Algonac), will have a significant impact on Southeast
Michigan's efforts to develop creative economy jobs by broadening the
definition of businesses eligible for MEGA credits to include those in the
creative sector. Senators Jason Allen (R-Traverse City) and Hansen Clarke
(D-Detroit) played a vital role in the success of this legislation and lead
the advocacy to include the creative businesses for the MEGA eligibility.
Creative businesses have been defined as:
Architecture and design including architectural design, graphic design,
interior design, fashion design, and industrial design
Digital media including internet publishing and broadcasting, video
gaming, web development, entertainment technology
Advertising and marketing firms including advertising and marketing
agencies, public relations agencies, and display advertising
Music production including record production and development, sound
recording studios, and integrated high-tech record production and
distribution
Film and video including motion picture and video production and
distribution, postproduction services, and teleproduction and production
services
Businesses meeting these criteria will be eligible for high-tech and/or
high-wage MEGA credits which are credits against the Michigan Business Tax.
A high-wage business is a business that has an average wage of 300% or more
of the federal minimum wage.
The bills take immediate effect.
"In this new economy based on innovation and globalization, progressive
leaders
recognize that creativity now drives global competitiveness," said Doug
Rothwell, president of Detroit Renaissance, lead advocates for amending the
bill to include the creative sector.
"Those communities that can develop and sustain an environment in which
its creative talent can thrive will be able to most effectively drive
economic development success - both because of job growth in specific
creative industries and because communities with a dynamic, creative soul
attract high impact employers and talented, skilled employees."
"These incentives will encourage creative business enterprises to
consider Michigan and bring new opportunities to attract new media and
advertising companies to locate in our state," said James C. Epolito,
President and CEO of the Michigan Economic Development Corporation. "We now
can promise our most talented writers, film-makers and artists new job
opportunities that were previously only available elsewhere."
Rothwell noted that globally, creative industries are estimated to
account for more than 7% of the World's GDP and the annual growth of the
creative industries is twice that of the service industries and four times
that of the manufacturing industries.
Developing Detroit's creative economy is one of the main
recommendations of Detroit Renaissance's Road to Renaissance, a plan to
transform Southeast Michigan's economy.
Other aspects of the initiative currently underway are:
-- Create a comprehensive, region-wide asset map and web portal of Greater
Detroit's creative sector
-- Develop a Creative Corridor on Woodward Avenue that acts as a platform
and catalyst to, among other things, attract and retain talent,
stimulate creative community output, and increase the presence of
creative industries in Detroit and the region
-- Establish a Creative Business Accelerator within the Creative Corridor
-- Develop a business attraction strategy to increase the density of
creative economy enterprises
-- Launch a branding and marketing program to showcase Greater Detroit as a
major hub of the world's creative economy
More announcements about plan progress will be made in early summer.
About Detroit Renaissance:
Detroit Renaissance provides leadership to accelerate the economic
transformation of Detroit and Southeast Michigan. Renaissance accomplishes
this work through serving as a catalyst to develop growth strategies,
advocating for those strategies and championing specific initiatives that
accelerate growth. A 501(c)(3) organization that was formed in 1970,
Detroit Renaissance includes the chief executive officers of the region's
most significant employers and universities. For more information, visit
http://www.detroitrenaissance.com.
