Michigan – The Unlikely New Star of US Cinema Article by: James Quinn, US Business Editor in Detroit A besuited George Clooney strides purposefully through Detroit Metro Airport, a wheeled-suitcase behind him – not to mention a gaggle of cameramen, producers and lighting and sound engineers. This was the scene early last year, when Clooney and the cast and crew of Up in the Air shot on location at the city's airport. A scene that would once have been filmed on a Hollywood sound stage or, at a push, at Los Angeles Airport, was instead shot, along with a significant proportion of other parts of the film, in the state of Michigan. The reason? Money. As a result of tax and other incentives drafted in by Jennifer Granholm, the state's pro-active governor, film-makers can qualify for subsidies of up to 42pc of their in-state production costs. The move is part of Governor Granholm's five-year attempt to diversify the state's economy away from the automotive industry – a recession-hit business that has delivered an unemployment rate of 15pc, one of the highest in the US, as Detroit's Big Three have continued to haemorrhage thousands upon thousands of workers over the last decade. Film-making is one of six industries chosen by the governor to focus upon – others include green technology and homeland security and defence work - and to date, her plan to make Michigan the Hollywood of the North appears to be working. Figures from the Michigan Film Office show that a total of 50 projects were filmed in the state in 2009, with a total production spend of approximately $223m (£136m), up from 35 projects and $125m in 2008. The data represent a significant leap in the number of productions heading to Michigan – given only 44 films were made there in the eight years up to and including 2007. Big-budget titles that shot on location last year include comedy Youth in Revolt, featuring Juno actor Michael Cera and which has just been released in the US, and dramatic thriller Stone, which stars Robert de Niro and Ed Norton and is due for release later this year. For film-makers, the benefits are obvious: "It's extremely appealing," says Andrew van den Houten, an independent producer who shot horror movie Offspring – just released on DVD by Lionsgate – on location in the state. He estimates he received 30pc to 33pc of his budget back, lower than the maximum incentives available because he chose to draft in crew from New York and Los Angeles with whom he'd worked before. "They [the people of Michigan] want you to be there, they want to support film-makers, but at the same time there's a dire need for industry there, and it's a unique time as you feel you're really contributing." Van den Houten, who runs small production house Modern Cine, found out about the state's incentives while working to help fund a new film studio at the WaterMark centre in Muskegon, on the eastern shores of Lake Michigan. He pinpoints the "unique charms" of Michigan's upper peninsula as being particularly appealing to film-makers, and is due to start shooting another film there in April. But one of the biggest concerns, as the Michigan state legislature considers whether to renew these incentives, is if the tax credits are of benefit economically. Interestingly, a new report from the Washington-based, conservative-leaning Tax Foundation shows that film incentives tend to fail to encourage overall economic growth or raise tax revenue on a national level. But in Michigan, the wider economic impact is significant. According to a February 2009 report by Michigan State University's (MSU) Centre for Economic Analysis, in the nine months since the incentives were signed into law in April 2008, the film industry generated the equivalent of 1,102 full-time jobs, with a total income of $53.8m. It is also expected to generate tourism revenues, on top of Michigan's already successful "Pure Michigan" tourism campaign – which has increased visitor numbers to the state considerably since launching in 2008, boosting the state's second-biggest industry. Janet Lockwood, director of the Michigan Film Office , says that with reports in from 40 of the 50 films made in the state last year, more than 4,200 jobs were created in 2009, not including extras and walk-ons, which would be the equivalent of another 3,000 to 4,000. Job creation would be spurred, however, by the establishment of full-time studios, says Lockwood, pointing out that it would allow year-round filming – Michigan suffers from severe winters – and employ several hundred people all year at each location. Several studios are in the process of being developed – including one at General Motors' old Centerpoint truck plant in Pontiac – although none has yet to come to fruition. But Lockwood remains confident. She also points to the knock-on effect the burgeoning industry has on the state, with the film industry spending $65.4m within state in 2008, according to the MSU study. Of this, $40.3m was spent on services including hotels, foods and equipment rental. "It's not the auto industry, we never pretend it is," says Lockwood. "But this can make money for us, and lots of jobs," which, for a state as economically depressed as Michigan, has to be good news. Article Posted: Posted 01/26/10