The Marvel Studios film passed up filming in Michigan because of limited incentives.
Marvel Studios has decided to shoot the Shane Black-directed Iron Man 3 in North Carolina.
The Detroit Free Press reports the studio had sought to film the superhero sequel at Michigan's Raleigh Michigan Studios, but wanted between $20 million and $30 million in incentives. Because of a cap implemented on film incentives earlier this year by the Michigan state government, any film incentive more than $25 million would have to be brought before the legislature.
Though the state did make a matching offer of $20 million in incentives, Marvel ultimately decided to shoot the film in North Carolina.
The film starring Robert Downey Jr. is expected to be released in May 2013.