A transferable tax credit incentive bill has been introduced in the Minnesota House by Rep. Dave Lislegard and in the Senate by Sen. Dave Tomassoni. Please refer to the bill numbers when talking to legislators - HF1975 and SF1986. A tax credit for film and TV production could be a game-changer for Minnesota's production industry, allowing us to compete with other states for the dollars and jobs that come with production.
Please contact members of the Tax Committee in both the House and Senate and tell them that you support the legislation, and urge them to include it in the Omnibus Tax Bill.
An appropriation of $500,000 per fiscal year for Minnesota's rebate incentive program is included in HF 1342 and SF 1098, the Governor's budget for jobs and economic development. This bill goes to the Jobs Committee in both chambers, and you can reach out to members of those committees and urge them to include the funding in the Omnibus Budget Bill.
Contact information for Tax and Jobs Committee members is on the lefthand side of this page, along with informational handouts.
What Are Incentives?
Production incentives (tax credits and rebates) are offered by states as part of their economic development and job growth plans. Since their introduction in the 1990s, incentives have become a driving factor in where projects are filmed. Currently more than 30 U.S. states and multiple cities and regions, recognizing the economic potential of the industry, offer incentives for film and television production.
Production Incentives Work
Film, TV and digital media production is a major private sector employer, supporting 2.1 million jobs and $139 billion in total wages annually in the U.S. It generates billions in public revenues from state and federal taxes: sales tax, income tax, unemployment, Medicare and Social Security (based on direct employment in the industry).
The industry also supports indirect jobs and wages in companies with which it does business, such as retail outlets, caterers, dry cleaners, restaurants, hotels, florists, hardware and lumber suppliers, software, and digital equipment suppliers.
How Minnesota Compares
Minnesota’s current incentive, a rebate program, is not competitive with states that offer tax credits. Rebate programs, dependent on direct legislative appropriation, work great for smaller projects like low-budget independent films and commercials. But they are generally funded at a low level and unstable, making it impossible to maintain a sustainable, long-term industry. Minnesota will never have an episodic series produced in our state without a tax credit program.