Incentives
Minnesota offers a 25% transferable tax credit plus multiple regional incentives.
The Minnesota Film Production Tax Credit
The Minnesota Film Production Tax Credit is an incentive passed by the Minnesota Legislature and signed into law (MN Statutes 116U.27) by the Governor to attract new film productions that employ Minnesota residents and promote Minnesota. An assignable 25% income tax credit is provided to production companies that expend at least $1,000,000 in a consecutive 12-month period for eligible production costs. Applications are accepted on a rolling basis, and allocations are made on a first-come, first-served basis until the program's available funding has been fully allocated. Tax Credit Certificates are issued for the taxable year in which the twelfth month of the consecutive 12-month period lands.
Minnesota provides $25 million in credits annually. As of December 16, 2024, $51.9 million in credits remain available for allocation. On January 1, 2025, an additional $25 million in credits will become available for allocation.
Recent program updates include:
Compensation paid to all above-the-line talent is capped at the first $1M in wages for each individual, provided that required Minnesota withholding taxes are remitted.
Compensation paid to below-the-line non-residents employed in the production of a film is credited at 20% provided that required Minnesota withholding taxes are remitted. Qualifying projects must continue to employ Minnesotans' to the extent practicable.
Cost Verification Report and Agreed Upon Procedures has been revised
Email program inquiries and forms to MNfilmtaxcredit.tour@state.mn.us
Program authorization has been extended until December 31, 2030
Applying for a Film Production Tax Credit is a multi-step process. Only production companies may apply for the Film Production Tax Credit. In order to be eligible, applicants must meet eligibility requirements as stated in the program guidelines. The applicant must apply for and receive a Credit Allocation Letter prior to beginning principal photography. Any expense incurred prior to issuance of a Credit Allocation Letter are deemed ineligible.
On the day principal photography begins in Minnesota, the applicant is required to submit a Project Start Certification by email to MNfilmtaxcredit.tour@state.mn.us
Download the Project Start Certification
Daily call sheets must be sent to MNfilmtaxcredit.tour@state.mn.us
Download a sample call sheet
All expenses under consideration for credit must be reported on the Detailed Cost Ledger of Minnesota Qualified Expenses.
Download the Detailed Cost Ledger
For questions about the application, please contact:
jill.johansen@state.mn.us
Within 30 days of project completion, the production must commission a Cost Verification Report prepared by an independent certified public accountant (CPA) licensed in the state of Minnesota.
The production company must provide two documents to the CPA at the time of engagement: the Cost Verification Report Guide & Agreed Upon Procedures, and the Final Production & Economic Impact Report. All report preparation costs are to be paid for by the production company and are NOT an eligible expense for the incentive program.
Final Production & Economic Impact
The production company must submit the Cost Verification Report and the Final Production & Economic Impact Report within 30 days of the report completion date to Explore Minnesota Film which will review to determine the final credit amount. If additional information is needed, Explore Minnesota Film will contact the production company or the CPA; otherwise, a Tax Credit Certificate is issued in approximately 90 days. The Tax Credit Certificate will not exceed the Allocation Letter amount regardless of actual eligible expenditures and is issued for the taxable year in which the twelfth month of the consecutive 12-month period lands.
Additionally, all projects receiving the tax credit must include a visible display of a static or animated logo approved by the director of Explore Minnesota Film, that promotes Minnesota within its presentation in the end credits for the life of the project.
The recipient of a Tax Credit Certificate claims the credit upon filing a Minnesota income tax return. Alternatively, the recipient may assign the certificate to another taxpayer before any amount of the credit is claimed. An assignment is not valid unless the assignee files an assignment within 30 days of the date the assignment is made. A confirmation letter will be issued after the administering agency has processed the assignment.
2022 Minnesota Withholding Tax Instructions
2023 Minnesota Withholding Tax Instructions
2024 Minnesota Withholding Tax Instructions
The Minnesota Department of Revenue oversees the assignment and claiming of credits. For questions on claiming the credit, visit the Department of Revenue Film Production Credit site or contact
businessincome.tax@state.mn.us
651-282-5225
800-657-3605
Regional Incentives
In addition to the MN Film Production Tax Credit, Minnesota is also pleased to offer a number of regional film production incentives.
This program offers financial assistance in the form of a production rebate to eligible applicants to encourage the creation of film, television, and digital media content production in the Department of Iron Range Resources & Rehabilitation’s service area (also known as the Taconite Assistance Area). This program exists to help develop and maintain a strong production industry presence that will contribute substantially to the economy in the Iron Range Resources & Rehabilitation’s service area in northeastern Minnesota. The program provides a reimbursement of up to 20% of production and post costs for film, television, episodic and commercial content projects that are spent in the service area. The Iron Range Regional Production Incentive Program can be used with the Minnesota Film Production Tax Credit and/or any other regional incentive. For more information about eligibility requirements and details on this rebate program contact the Upper Midwest Film Office:
admin@uppermidwestfilmtv.org
218.461.1628
https://uppermidwestfilmtv.org/incentives/
The St Louis County, MN Production Incentive Program offers financial assistance in the form of a production rebate to certified applicants to encourage the creation of film, television and digital media content in St Louis County and to foster the local organic growth of the production industry talent and workforce. The program provides a reimbursement of up to 25% of production and post costs for film, television, episodic and commercial content projects that are spent in St. Louis County. It is funded by St. Louis County and the Upper Midwest Film Office (UMFO) is the administrator for the program. The St. Louis County Film Production Incentive Program can be used with the Minnesota Film Production Tax Credit and/or any other regional incentive. For more information about eligibility requirements and details on this rebate program contact the Upper Midwest Film Office:
admin@uppermidwestfilmtv.org
218.461.1628
https://uppermidwestfilmtv.org/incentives/
In partnership with the Duluth Economic Development Authority (DEDA), the City of Duluth Production Incentive Program offers financial assistance in the form of a production rebate to certified applicants to encourage the creation of film, television, and digital media content in Duluth, MN. The program provides a reimbursement of up to 25% of production and post costs for film, television, episodic and commercial content projects that are spent in the City of Duluth. City of Duluth Rebate funds are limited (up to $200,000). The Upper Midwest Film Office (UMFO) is the administrator for the program. The City of Duluth Production Incentive Program can be used with the Minnesota Film Production Tax Credit and/or any other regional incentive. For more information about eligibility requirements and details on this rebate program contact the Upper Midwest Film Office:
admin@uppermidwestfilmtv.org
218.461.1628
https://uppermidwestfilmtv.org/incentives/
The Incredible Austin Minnesota Film Rebate provides a 10% reimbursement up to $10,000 per project for eligible costs incurred in the City of Austin. This program is administered by the Austin Convention and Visitors Bureau. This program is scheduled to sunset June 30, 2022. The Incredible Austin Minnesota Film Rebate Program can be used with the Minnesota Film Production Tax Credit and/or any other regional incentive. For more information about eligibility requirements and details on this rebate program contact:
Austin Convention and Visitors Bureau
301 N. Main Street Austin, MN 55912
507.437.4563
www.AustinMN.com
The city of Maple Lake has created a film rebate program to encourage movie and television production in the city and to support local businesses that can service the film industry. The program is a 15% rebate for up to $50,000 in qualified production costs (max. $7,500 per production). The Shamrock Film Rebate can be used with the Minnesota Film Production Tax Credit and/or any other regional incentive. For more information about eligibility requirements and details on this rebate program contact:
City of Maple Lake
10 Maple Avenue S.
P.O. Box 757
Maple Lake, MN 552358
320.963.3611
www.ci.maple-lake.mn.us
Tax Exemptions
Some projects and related expenses may be tax exempt resulting in significant cost savings in Minnesota.
State sales tax does not apply to purchases of food and clothing, or to the making of television commercials. For a detailed document outlining the definition of TV Commercial as well as which costs may be tax exempt, click here.
Minnesota Department of Revenue Sales Tax Fact Sheets and Industry Guides
Form ST3, Certificate of Exemption
Questions should be directed to the Minnesota Department of Revenue
651.556.3000
800.657.3666
revenue.state.mn.us
Hotels and Other Lodging Establishments Industry Guide
Questions should be directed to the Minnesota Department of Revenue
651.556.3000
800.657.3666
revenue.state.mn.us
