Incentives
Minnesota offers a 25% transferable tax credit plus multiple regional incentives.
MN’s Film Production Tax Credit
The MN Film Production Tax Credit is an incentive passed by the Minnesota Legislature and signed into law (MN Statutes 116U.27) by the Governor to create new film productions that employ Minnesota residents and promote Minnesota.
Recent program updates include:
Projects that expend at least $5,000,000 of qualified expenditures are eligible for a 15% credit for below the line compensation paid to non-Minnesota residents employed in Minnesota. 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 FilmInMN.DEED@state.mn.us
Annual funding increased to $24,950,000 per year. Unused allocations remain available for up to four future program years
Program authorization has been extended until December 31, 2030
MN’s Film Production Tax Credit provides a transferable 25% income tax credit to production companies that spend 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 $25 million annual maximum has been fully allocated. Apply at least 30 days but not more than 180 days prior to beginning principal photography in Minnesota. Unused annual funds will roll forward to the next year.
Only production companies are eligible to apply for the Film Production Tax Credit. In order to be eligible applicants must:
- Apply at least 30 days but not more than 180 days prior to beginning principal photography in Minnesota
- Plan to expend a minimum of $1,000,000 in eligible expenses during a consecutive 12-month period
- Employ Minnesota residents to the extent practicable
- Be able to submit proof that the project is at least 75% funded
- Agree to promote Minnesota by visibly displaying a static or animated logo approved by Explore Minnesota Film in the end credits for the life of the project
- Remain in good business standing with the Secretary of State of Minnesota
- Be able to obtain and submit a tax clearance statement from the Minnesota Department of Revenue
Note: This is a partial eligibility list. Comprehensive details may be found on the MN Department of Employment and Economic Development website.
Applying for a Film Production Tax Credit is a multiple step process. The applicant must apply for and receive a Credit Allocation Certificate prior to beginning principal photography. Any expense incurred prior to issuance of a Credit Allocation Certificate are deemed ineligible.
Regional Incentives
In addition to the MN Film Production Tax Credit and the MN Production Rebate, 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 MNPR, 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 MNPR, 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 MNPR, 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 MNPR, 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 MNPR, 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
"The MN Production Rebate was crucial in making HERbeat possible. It solidified our commitment to utilizing primarily MN crew throughout both production and post-production, strengthening the local film community and our economies."
- DAWN MIKKELSON, EMERGENCE PICTURES