State Legislation Impacts Creative Economy Initiative

State Legislation Impacts Creative Economy Initiative

New provisions include tax incentives to creative companies

DETROIT, May 5 /PRNewswire-USNewswire/ -- Southeast Michigan's creative business community will get a boost as a result of Governor Granholm's signature on a series of bills that would make creative businesses eligible for state MEGA tax credits.

Signed into law yesterday, Public Act 108 of 2008, sponsored by Senator 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. Senators 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, postproduction services, and teleproduction and production services

Businesses meeting these criteria will be eligible for high-tech and/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% 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 attract high impact employers and talented, skilled employees."

"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," said James C. Epolito, President and CEO of the Michigan Economic Development Corporation. "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% of the World's 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.

Other aspects of the initiative currently underway are:
-- Create a comprehensive, region-wide asset map and web portal of
Greater Detroit's creative sector
-- Develop a Creative Corridor on Woodward Avenue that acts as a platform
and catalyst to, among other things, attract and retain talent,
stimulate creative community output, and increase the presence of
creative industries in Detroit and the region
-- Establish a Creative Business Accelerator within the Creative Corridor
-- Develop a business attraction strategy to increase the density of
creative economy enterprises
-- Launch a branding and marketing program to showcase Greater Detroit as
a major hub of the world's creative economy

More announcements about plan progress will be made in early summer.

About Detroit Renaissance:

Detroit Renaissance provides leadership to accelerate the economic transformation of Detroit and Southeast Michigan. Renaissance accomplishes this work through serving as a catalyst to develop growth strategies, advocating for those strategies and championing specific initiatives that accelerate growth. A 501(c)(3) organization that was formed in 1970, Detroit Renaissance includes the chief executive officers of the region's most significant employers and universities. For more information, visit www.detroitrenaissance.com.

First Call Analyst:
FCMN Contact:

Source: Detroit Renaissance

CONTACT: Anne Masterson of Detroit Renaissance, +1-313-259-5400

-------
Profile: intent