Parallels our Alignment to Purpose (21st Century Digital Learning Communities of Pratice)

Posted: Monday, 05 May 2008 3:41PM

'Creative Economy' Firms Can Now Get State Tax Credits

Michigan's creative business community will get a boost as a result of Gov. Jennifer Granholm's signature on a series of bills that would make creative businesses eligible for state MEGA tax credits.

State officials say the bill, sponsored by State Sen. 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.

State Sens. 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, soundrecording 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 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 percent 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 attracthigh impact employers and talented, skilled employees."

Added James C. Epolito, president and CEO of the Michigan Economic Development Corp.: "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. 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 percent of world 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.

More at www.detroitrenaissance.com.

© MMVIII WWJ Radio, All Rights Reserved.