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, sound recording studios, and integrated high-tech record production and distribution.
Film and video including motion picture and video production and distribution, post-production 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.
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.
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