Long time producer Frank DeMartini (Mad Money, Mozart and the Whale) recently posted an op-ed opinion piece on Big Hollywood which gives a very disturbing look at the union film politics in Michigan. His fear is that the new Union “Maryland Rates” that go into effect on August 1st, 2009 will wipe out any gain that productions may get form the new Michigan Tax Credits.

In the latest deal struck with the AMPTP, the IATSE has changed Michigan’s ten most production friendly counties into the Maryland Rates. The change effects Ann Arbor and Detroit’s scenic and wealthier suburbs.

You may ask, how is this killing production and the economy in Michigan? Well, prior to this union agreement which takes effect on August 1, 2009, most of Michigan, except for Detroit’s Wayne County, came within the Area Standards rates which cover most of the country, including South Carolina and Louisiana. According to a production executive at my company, the additional cost of the Maryland Rates will be almost $500,000 over the course of an average production. Hence the benefits of the 40% in tax credits is gone. [read more]