Feature: Michigan's Tax Breaks Don't Work For Games

Author: by Staff

In Gamasutra's latest feature, we find out why, in the words of Stardock's Brad Wardell, Michigan's tax breaks are not "sufficient enough to justify" game companies to apply for the money. "The compliance requirements were just way beyond what we were willing to do based on the amount of money we would get," the Stardock CEO told Gamasutra. "The [Michigan Film Office] did a great job to make sure no one is bilking the government." The tax credit was signed into law in 2008, but is offered to both film projects and game projects -- and developers tell Gamasutra that the office doesn't understand the needs of the game industry. "You don't get how this industry works and you're just making random judgments on stuff!" is what Nathaniel McClure, who moved to Michigan amidst promises he'd get funding, ended up telling the Office during extensive conversations -- after he was ultimately rejected. "I said to the Treasury Department, 'Can we sit down please? I moved here. I moved my family here. I've spent a lot of money, can you just talk to me?' And they wouldn't," said McClure. It was then that he filed a lawsuit against the Michigan Film Office and the Michigan Department of Treasury. The full feature has much more from McClure, the Michigan Film Office spokesperson Michelle Begnoche, and it's live now on Gamasutra.