The Detroit Free Press is reporting that the production is pulling out of the state in response to Governor Rick Snyder’s new proposed budget that would slash the tax incentives the state had previously offered to lure filmmakers into spending their production budgets there. Snyder’s budget eliminated the current tax break incentives in favor of a $25 million cap on tax breaks for each of the next two years. Marvel Studios pulled out of filming in the state when it was unclear to them whether or not they would qualify for the original tax incentives or fall under the new proposal.
Marvel has not officially confirmed the story, though the Free Press quoted several Detroit area businesses who were in initial talks to provide services to the the production as saying they have been told that their services will not be needed. State location scout Tom Moisides stated –
I’m mad as hell… I feel like I’ve been punched in the stomach. Something has to happen quickly if we’re going to keep the film industry here, like a message from the governor that says, ‘We’re still open for business.’ The reality is, because of the uncertainty, productions are shutting down immediately.
The Joss Whedon directed film is the first major production to back out of shooting in Michigan due to the budget proposals and it is not expected to be the last.
Snyder has come under fire recently from the state’s film industry for the proposed slash to the tax incentives as not being damaging to just filmmakers but the state’s overall economy. A study released today has found that for every dollar spent in Michigan by a film company another $6 dollars in economic activity is generated and that the production of movies and TV shows in Michigan during 2009 and 2010 generated $812 million in economic output and 6,491 full-time equivalent jobs.
It is not yet known where Marvel intends to move it’s location work to.