Advocacy

UPDATE 6/2/21

TIME TO CALL THE GOVERNOR!

An article in today's Minnpost says that the tax credit is tentatively in the final tax bill, but that the Governor has not yet signed off on it. 

Please call the Governor's office and let them know how important this provision is to you and the economy of Minnesota!

Governor's office: 651-201-3400

 

UPDATE 5/18/21

What's going on at the legislature and where do we stand?

The regular legislative session adjourned on Monday with much left undone, but with overall agreement on the budget. Over the next two weeks, conference committees will negotiate the details and present their numbers on May 28. A special session will begin on June 14, with the hope that all bills will be ready to quickly pass and be signed into law. 

We don't have definitive answers on the two provisions relevant to the production industry - rebate funding and the tax credit incentive - but here's what we know. 

The production rebate is in the jobs bill at $500,000 per fiscal year for two years (the same level as the last two budget cycles). There is agreement in both the House and Senate versions of the bill, so we expect this to pass and funds to be available after the beginning of the fiscal year on July 1.

The tax credit provision is in the House version of the tax bill, providing $10 million in credits per fiscal year for four years. Although it was not included in the Senate version of the bill, we remain hopeful that this provision will survive the negotiations.

We'll continue to provide updates as we get new information, so for now we urge you to continue contacting the key leaders to urge their support.

Senate Majority Leader Paul Gazelka (09, R), Nisswa/Gull Lake
651-296-4875
https://www.senate.mn/members/email-form/1169
 

House Speaker Melissa Hortman (36B, DFL), Brooklyn Park
651-296-4280
rep.melissa.hortman@house.mn

 

Rep. Paul Marquart, House Tax Committee Chair, (04B, DFL), Becker and Clay Counties, Detroit Lakes
651-296-6829
rep.paul.marquart@house.mn
Thank him for supporting it in the House.  Encourage him to keep it in the Omnibus Tax Bill.

 

Sen. Carla Nelson, Senate Tax Committee Chair, (26, R), Rochester
Senate tax credit bill co-author
651-296-4848
sen.carla.nelson@senate.mn
Thank her for joining as an Author. Encourage her to keep it in the Omnibus Tax Bill.

 

 

UPDATE: 5/5/21

The Minnesota Film Production Tax Credit has entered the next phase – Conference Committee - Contact Key Members Listed Below

This is the closest the State of Minnesota has come to adopting a Transferable Tax Credit!  If passed, this 25% tax credit film production incentive would encourage medium and large budget film and TV projects to produce in Minnesota, creating jobs and economic development.

Since we were included in the House Omnibus Tax Bill and NOT in the Senate Omnibus Tax Bill, the film production tax credit must be negotiated in a joint Conference Committee to reconcile the differences between the House and Senate bills.  This effort is not over AND it is not a sure thing that the bill will pass.

What does this mean? – It means we now need everyone fully engaged to convince members of the the Conference Committee – as well as the House Speaker and Senate Majority Leader – that encouraging the multi-billion dollar film and TV industry to come to the state will bring jobs and economic development to all of Minnesota.

We are again asking EVERYONE to take action – AND asking you to spread the word and encourage friends, family, and colleagues to participate in this outreach effort! This is especially important if you or someone you know is a constituent of these Senators or Representatives.

Find your district here: https://bit.ly/3aR2Q6f.

Over the next few days reach out to key members of the Conference Committee and the House and Senate Leadership via phone AND email letting them know you support this Minnesota jobs and economic development bill, AND ask that they include the Film Production Tax Credit provision in the final version of the Omnibus Tax Bill (HF 991/SF 961).

PLEASE begin with one of these methods of outreach IMMEDIATELY, and progress to the next method a day or two after.  TIP: If you prepare your “script” before your phone calls it goes a lot quicker and is not stressful. If you do your emails first that IS your “script” for the phone calls.

PHONE CALLS AND EMAILS

What to include:

1) Your Name

2) Your profession and why this bill matters to you (make it personal)

3) If you're one of their constituents, let them know. Find your district here: https://bit.ly/3aR2Q6f)

4) Ask them to include the Film Production Tax Credit provision in the FINAL Omnibus Tax Bill (HF 991/SF 961)

5) Stress this is a Jobs and Economic Recovery bill for all Minnesotans

6) Other talking points can be found here: https://www.sagaftra.org/filmtv-tax-incentive-minnesota-we-need-your-help  Pick one that stands out to you and personalize it with your perspective.

 

Conference Committee Member Information

Sen. Carla Nelson, Senate Tax Committee Chair, (26, R), Rochester

Senate tax credit bill co-author

651-296-4848

sen.carla.nelson@senate.mn

Thank her for joining as an Author. Encourage her to keep it in the Omnibus Tax Bill.

 

Sen. Jeremy R. Miller, Senate Tax Committee Vice Chair, (28, R), Winona

651-296-5649

sen.jeremy.miller@senate.mn

 

Sen. Ann Rest, Senate Tax Committee Ranking Minority Member, (45, DFL), Golden Valley

Senate tax credit bill co-author

651-296-2889

www.senate.mn/members/email-form/1051

Thank her for joining as an Author.  Encourage her to keep it in the Omnibus Tax Bill.

 

Sen. Thomas M. Bakk, (03, I), Cook

651-296-8881

www.senate.mn/members/email-form/1003

 

Sen. Bill Weber, (22, R), Luverne

651-296-5650

sen.bill.weber@senate.mn

 

Rep. Paul Marquart, House Tax Committee Chair, (04B, DFL), Becker and Clay Counties, Detroit Lakes

651-296-6829

rep.paul.marquart@house.mn

Thank him for supporting it in the House.  Encourage him to keep it in the Omnibus Tax Bill.

 

House and Senate Leadership Information

House Speaker Melissa Hortman (36B, DFL), Brooklyn Park

651-296-4280

rep.melissa.hortman@house.mn

 

Majority Leader Paul E. Gazelka (09, R), Nisswa/Gull Lake

651-296-4875

https://www.senate.mn/members/email-form/1169

 

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.