H'wood wary of Michigan.

The ink was barely dry on Michigan Gov. Rick Snyder's proposed state budget last Thursday when the fallout in Hollywood began: One location manager, set to fly into the state this week to scout for a Fox Searchlight project, canceled his trip. The studio told him not to bother.

Earlier that day, the recently inaugurated Republican governor pitched dramatic cuts to Michigan's generous film tax incentive program, part of his $1.8 billion plan to slash the state's budget. Michigan currently offers up to 42% in refundable tax credits for projects shooting in the state, with no annual maximum--a program that authorized $163 million in incentives last year alone.

Snyder's …