Minnesota Production Tax Incentives

Overview

  • Minnesota offers a 20% transferable tax credit on BTL non-resident labor and 25% on resident labor and non-payroll spend to projects that incur $1M in in-state spend within a 12-month period.
  • Noncommercial productions can also apply for a sales tax exemption (excl. purchase of food or clothing).

Eligible project types: Animation, commercials, documentaries, feature films, music videos, pilots, reality TV, scripted TV, standalone postproduction.

Incentive details

Type
Transferable tax credit
Rate
25% (resident labor & non-payroll spend); 20% (BTL non-resident labor)
Uplift(s)
None
Annual Cap
$25M
Project Cap
None
Compensation Cap
$1M per individual ATL talent; $500K for one non-resident producer and one non-resident director is eligible (one non-resident producer and one non-resident director per episode if episodic production).
Eligible Expenses
Direct production costs incurred in and paid to a mn business (located in and conducts business in state and files a mn tax return). expenses incurred prior to the date on the project allocation certificate are not eligible.
Additional Info
Productions can apply for a sales tax exemption (does not apply to purchases of food and clothing or the making of TV commercials).

Requirements

Minimum Spend
$1M within a 12 month period
Local Hire Requirement
Yes - employ Minnesota residents to the extent practicable.
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
None
Application Timing
Apply at least 30 but no more than 180 days prior to beginning principal photography in Minnesota. Postproduction only projects must apply at least 30 days but not more than 90 days prior to beginning project work. Applicants must demonstrate evidence that the project is at least 75% funded.
Audit
CPA audit required. Projects must commission an audit by an independent CPA licensed in the state within 30 days of project completion and submit the audit report within 30 days of its completion.

How to Apply

Application
Application Timing
Minnesota Film Office

JEANELLE AUGUSTIN, DEPUTY DIRECTOR, 651-757-1865, JEANELLE.AUGUSTIN@STATE.MN.US
Find your perfect location in Minnesota | MN Film and TV

Helpful Links

TC25.Guidelines.pdf
Sec. 116U.27 MN Statutes
Film Office FAQ.pdf
ST3, Certificate of Exemption

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