Minnesota (Tax Credit)

Register the production company with the Minnesota (MN) Secretary of State; schedule and participate in a pre-application consultation with MN Film and TV; submit an online application at least 30 days but not more than 180 days PRIOR to the start of principal photography in MN and receive a Credit Allocation Certificate prior to beginning principal photography; meet the minimum qualified spend requirement in a consecutive 12-month period beginning when expenditures are first paid in Minnesota for eligible production costs; employ MN residents to the extent practicable; be prepared to submit proof that the project is at least 75% funded; promote MN by visibly displaying a static or animated logo approved by DEED lasting at least five seconds in the end credits before the below-the-line crew crawl for the life of the project; remain in good business standing with the MN Secretary of State; obtain and submit a tax clearance statement from the MN Department of Revenue; within 30 days of project completion, commission an audit by an independent CPA licensed in the state; and submit the audit report within 30 days of its completion.

Qualified spend includes direct costs of production incurred in and paid to a MN company, as defined, including, production-related services, such as legal, audit, accounting; compensation paid to MN resident below-the-line; above-the-line compensation paid to MN resident writers or actors; the first $500,000 in wages paid to each resident above-the-line producer or director; the first $500,000 in wages paid to one nonresident producer per episode, one nonresident director per episode, and all nonresident principal acting talent, provided that the required MN withholding taxes are remitted. Individuals that hold more than one position are only eligible once. Expenses incurred PRIOR to the date on the project allocation certificate are not eligible.

This program is administered on a first-come, first-served basis. MN offers a transferable tax credit up to 25% of qualified spend. The program has annual funding of $24,950,000 per calendar year. Tax Credit Certificates are issued for the taxable year in which the twelfth month of the consecutive 12-month period lands. Tax Credit Certificates are issued within 90 days after the auditor’s report is reviewed. This program is scheduled to sunset December 31, 2030.