Canadian studio and film production executives might want to think about lobbying for provincial and federal tax incentives to mirror those now being touted by Michigan state.
A little-known tax break for music producers that could help put Motown back on the music map has been available for two years in Michigan – but no one has taken advantage of it.
The state offers tax credits of up to 42% for the production of music CDs and music videos. The break was designed to lure big-name artists to record in Michigan, which already is home to Eminem, Kid Rock and Bob Segar.
The incentive is tucked away in a package of tax breaks for the movie industry, and state officials have put most of their efforts into growing the local film business instead of promoting the music break, the Detroit Free Press reported Sunday.
The tax break can be claimed only by those who spend at least $50,000 in the state, a threshold that can be met by big-name artists but likely not others. Companies must apply for the tax breaks in advance, and it can take a year before the money is paid.
Thanks to Humphrey Kadaner for lighting the bulb for us on this possibility.
