Like the zombies in the 1985 cult classic “Return of the Living Dead,” government film incentive programs keep trying to crawl out of the grave. Officials in Michigan should resist this unwelcome development, and a new policy brief from the Mackinac Center explains why. “The False Promise of Film Incentives,” published in April, helps lawmakers and citizens separate myth from reality by examining the real-world performance of film and media production subsidies. It draws on peer reviewed university research and fiscal analyses produced by states with such programs.
The verdict is clear: Film subsidies function less like economic development tools and more like wealth transfers, taking money from many taxpayers to benefit a small, politically favored industry. They fail to create lasting jobs and show no meaningful impact on broader economic growth.
Michigan’s own experience should be sobering. From 2008 through 2015, taxpayers spent roughly $500 million underwriting film productions before lawmakers canned the program. The state was left with no lasting film jobs to show for its trouble. Two state-authorized studies found the program generated large net losses, confirming what scholars had long warned.
Our policy brief reminds today’s lawmakers of these hard lessons. We mailed a copy to every member of the Legislature, equipping them with a much-needed perspective as calls to revive subsidies grow louder.
Subsidy advocates struck out in 2024, but their efforts are underway again. On May 12, the Michigan Film Industry Association hosted a legislative reception in Lansing to rally support. Its website notes that while legislation “has not yet been introduced in the 2025–2027 session, plans are in the works.”
Across the country, film incentives are being reborn or expanded. California recently approved subsidies totaling $750 million per year, and some Los Angeles mayoral candidates have argued for eliminating caps altogether.
Fortunately, the Mackinac Center’s reach extends well beyond Michigan. My California-focused op-ed, “Gavin Newsom has a Hollywood blooper reel,” appeared in eight newspapers, including outlets in Los Angeles, Orange County, Pasadena and Whittier. The op-ed documented how decades of subsidies failed to increase film employment in the Golden State.
Most sequels are not as good as the original, and film incentives have earned two thumbs down for their repeated box-office flops. Michigan’s lawmakers should refuse to fund a sequel.
$500 Million
spent by the state (2008-2015 estimate)
-.62 return
on investment (assessed in 2014)
0 permanent jobs
from subsidized films (assessed in 2014)
