The Canadian production sector received good news Thursday with word that Michigan is proposing ending its film tax credits.

Newly elected Michigan governor Rick Snyder unveiled state budget proposals that include eliminating the Michigan film credit, to be replaced with a US$25 million grant program to promote economic development and job creation.

If approved, the budget measure would end the state’s 42% refundable tax credit offered on Ontario’s doorstep that saw the ABC series Detroit 1-8-7 and the Transformers 3 movie shoot locally.

Canadian industry players attending the Prime Time conference in Ottawa greeted news of Michigan possibly ending its tax credit optimistically, as the news will help when making the rounds of Hollywood studios preaching stability north of the border, compared to the tax credit chill in rival U.S. locales.

New Mexico also said it was reviewing its film tax credit owing to state budget concerns.