Minnesota offers both a transferable film tax credit and a production rebate.

REBATE:

Feature Film/Documentary/Music Video:

20% - Qualified minimum Minnesota spend of at least $100,000 and 50% of the budget available in verified funds at the time of application.

25% - Qualified minimum Minnesota spend of at least $1,000,000 or shoot a minimum of 60% of days outside the metro area with qualified minimum Minnesota spend of $100,000; 50% of the budget available in verified funds at the time of application.

National Television Program or Series Production (new or relocation only; development or syndication contract from commissioning network or streaming service is required):

20% - Qualified minimum Minnesota spend of at least $100,000.

25% - Qualified minimum Minnesota spend of at least $1,000,000 or shoot minimum 60% of days outside the metro area with qualified minimum Minnesota spend of $100,000.

Television Pilot intended for national exhibition and reasonable commercial exploitation:

20% - Qualified minimum Minnesota spend of at least $100,000 and 50% of the budget available in verified funds at the time of application if not commissioned.

25% - Qualified minimum Minnesota spend of at least $1,000,000 or shoot minimum 60% of days outside the metro area with a minimum Minnesota spend of $100,000; 50% of the budget available in verified funds at the time of application if not commissioned.

TV or Internet Commercials & Post Production:

Only UP TO 25% - Qualified minimum Minnesota spend of $100,000 not including production fee. Rebate amount is based on fund availability; up to $200K per fiscal year is available on a first-come, first-served basis

Projects with $1,000,000 or more of Minnesota expenditures require a CPA review; CPA and cost are paid for by Minnesota Film and TV.  


*Projects that spend at least $5,000,000 of qualified expenditures are eligible for a 15% credit for below the line compensation paid to non-residents employed in Minnesota. 

TRANSFERABLE TAX CREDIT:

A minimum spend of $1,000,000 in 12 consecutive months.

Must show proof that your project is at least 75% funded. 

Must show best case effort that Minnesotans are being hired.

Audit is required.

For the rebate, submit a completed application no earlier than 90 days prior to the start of Minnesota principal photography or post-production (for standalone post production projects).

All certified projects must schedule a rebate processing procedures meeting with the Incentives Specialist prior to beginning production. 

The rebate is awarded on a point system based on: economic impact; key personnel; MN production days; MN location and representation; and distribution. 

For the tax credit, apply at least 30 days but not more than 90 days prior to beginning principal photography in Minnesota.

Eligible expense paid to a producer is capped at no more than 10% of the total qualified expenditure

*The rebate has a compensation cap: for non-resident above-the-line principal acting talent/director/producer salaries and fringes, the rebate amount is capped at 3% of total Minnesota expenditures. Non-resident director/producer reimbursement is further limited to a $100,000 cap per worker. If any one person or loan-out is being paid for two above-the-line positions, only one position is eligible for the rebate.

Expenses incurred prior to project certification are ineligible for the rebate.

Feature films spending $5,000,000 or more may apply up to six months prior to beginning production.

Sales and Use Tax exemptions apply to commercials only.

All production spending must occur within 12 months of certification date.

The Twin Cities Metro Area is defined as the area over which the Metropolitan Council has jurisdiction, including only the counties of: Anoka; Carver; Dakota excluding the city of Northfield; Hennepin excluding the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New Prague; and Washington.

The rebate’s annual cap is $500,000.

There is now a transferable credit option available with $4,950,000 in annual funding. Credits are first come, first served. Projects must spend $1,000,000 on in-state expenditures and labor to receive a credit of up to 25%. A CPA audit is required for the credit. 

**For the tax credit, below-the-line compensation paid to a resident of Minnesota employed in the production of a film is uncapped. Eligible compensation paid to a resident producer or director is capped at $500,000 provided that Minnesota taxes are withheld. Eligible compensation paid to all non-resident principal acting talent, one non-resident producer per episode, and one non-resident director per episode is capped at $500,000 provided that Minnesota taxes are withheld. Per diems and housing allowances paid to Minnesota residents and non-residents while working in Minnesota are eligible. Payments made in cash are not eligible.

The tax credit has a sunset date of December 31, 2030. If any one person or loan-out is being paid for two above-the-line positions, only one position is eligible for the rebate.