MIDLAND, Mich. — The House Economic and Small Business Development Committee passed bills yesterday that would resurrect Michigan’s failed film incentive program. The previous film production incentive lost 89 cents for every dollar spent, according to the state’s Senate Fiscal Agency. Independent research from liberal and conservative economists finds these programs to be expensive and ineffective.

Below is a statement from James Hohman, director of fiscal policy at the Mackinac Center for Public Policy.

“Michigan lawmakers are voting to take over $2 billion from taxpayers to give to movie producers. The changes made to the program demonstrate that its sponsors learned all the wrong lessons from its $500 million failure the last time around. The rest of the Legislature should recognize that there are better ways to improve the state economy.”

These bills would have taxpayers finance up to 30% of a film’s expenses. There are some differences on how the subsidies are distributed to production companies, notably that this program requires payments to be laundered through other companies’ tax returns. But this is a distinction without a difference to taxpayers, the film producers and the overall economic effects.

Learn more about these bills here.