The Economic Impacts of the New Economy Initiative in Southeast Michigan

The New Economy Initiative was found to have a positive impact on southeastern Michigan since its inception in 2008. The REMI model was able to estimate that companies supported by this initiative increased Southeast Michigan’s GDP by $1.9 billion in 2015 and will theoretically continue to increase that impact to $2.9 billion by 2020. Wages and salaries in the Detroit area also increased by a cumulative $1.1 billion in 2015 and should get to $1.8 billion by 2020. The NEI helps foster local conditions for the businesses they protect in order to support new business formation, growth, and development.

PWC – New Economy Initiative [full PDF]

Contribution of a Vehicle Infrastructure Integration System to the Economy of Michigan: Economic and Industrial Impacts Update and Benefit-Cost Analysis

The Michigan Department of Transportation requested that the Center for Automotive Research conduct a study of the economic impacts of vehicle infrastructure integration on the State of Michigan, including the effects on employment and a comparison of net costs and benefits. Vehicle infrastructure integration consisted of applying both vehicle-to-vehicle and vehicle-to-infrastructure communication to the tasks of improving safety, enhancing mobility and improving quality of life. The study determined that the annual costs to the State of Michigan of deploying, operating, and maintaining a vehicle infrastructure integration system could cost approximately $370 million. Despite this hefty price tag, the system would add over 16,000 annual full-time jobs to the state and would contribute $177 million in income tax revenues. This study decided it would be a good idea for the state of Michigan to proceed on developing and deploying a comprehensive vehicle infrastructure integration system, even though all questions were not resolved by this analysis.

Center for Automotive Research – Contribution of a Vehicle Infrastructure Integration System to the Economy of Michigan: Economic and Industrial Impacts Update and Benefit-Cost Analysis [full PDF]

Estimating the Impact of the Massachusetts Film Production Tax Incentives: A Preliminary Analysis

The REMI model simulated the structure of and interrelationships among the various parts of the Massachusetts economy for the Department of Revenue’s hypothetical “dynamic” analysis of the Massachusetts film industry tax incentives. For this type of analysis, the REMI model required that assumptions be made regarding the amount of total spending on Massachusetts-based film productions and how that spending was divided between payroll and other production expenses. It also required that, if known, the inputs be adjusted to account for the amount of payroll paid to non-Massachusetts residents. These assumptions were total film production spending, payroll expenses for non-residents, film production spending that would have occurred in the Commonwealth in the absence of tax incentives, and a balanced budget requirement. The model projected that with no balanced budget requirement, Massachusetts total output would increase by $368 million and total employment would increase by 4,044-5,314, of which 1,693-2,963 would be direct employment in the film industry.

Massachusetts Department of Revenue – Estimating the Impact of the Massachusetts Film Production Tax Incentives: A Preliminary Analysis [full PDF]

Economic Impact of Property Tax Cut with and without Changing Sales Tax

The Florida REMI econometric model was used to model the economic impact of two primary scenarios across the Florida economy. The first scenario adjusted property tax rates from a “rollback” perspective that examined both property tax reductions to residential and commercial sectors of the economy. The second scenario involved adjusting the property tax rate and corresponding sales tax rate. The model measured changes in consumer and producer behaviors and their impacts on the state Gross Regional Products, real disposable personal income, employment, population growth, relative cost of production, and a few other economic indicators. The model also measured both one-year and five-year effects of changes in property and/or sales tax.

Florida TaxWatch Research Institute – Economic Impact of Property Tax Cut with and without Changing Sales Tax [full PDF]

The Economic and Fiscal Impacts of Connecticut’s Film Tax Credit

The Connecticut Commission on Culture and Tourism requested the Department of Economic and Community Development perform an evaluation of the economic and fiscal impacts of the state’s film tax credit program. The study period was July 1, 2006 through September 30, 2007 during which thirteen productions filed final application seeking the issuance of tax credits from the Commission. Analysts found that within the study period, Connecticut’s film tax credit program stimulated $55.1 million in film production spending that generated $20.72 million in new real gross state product and added 395 full-time equivalent jobs that created $6.58 million in new real disposable personal income through multiplier effects. If the government paid for the tax credit by reducing expenditures, this analysis suggested the state could receive additional revenue from induced economic activity.

Connecticut Department of Economic and Community Development – The Economic and Fiscal Impacts of Connecticut’s Film Tax Credit [full PDF]