it's really all about the source data...

Another report came out this week about the effectiveness of Michigan's production tax incentives, and this one was negative.  Coverage of the report is HERE.

So- the big issue with this report is their source for data.  They used the MI Senate Fiscal Agency October, 2008 analysis of the program as a primary source.  Folks that have reviewed that report know that it paints a "worse case scenario" for the legislature to consider.  It basically contemplates the state paying out 100% of the credits applied for, and really doesn't have any basis in the reality of Michigan's obligations to issue credits (and pay refunds, if applicable). That reality involves verification that all of the money being spent by production companies and reported as qualified spend was indeed spent in accordance with the statute (or the Michigan Film Office and the Department of Treasury's interpretation of the statute, at least).  The state's liabilty is significantly lower once the production companies' expenditures are vetted.

If you're looking at reports about the Michigan production tax incentive program- positive or negative- remember to check the sources.