Here you'll find answers to some of the most frequently asked questions about the Film Production Tax Credit program. Scroll down the page to view all the questions, or select from the links below to view specific sets of answers.
Film is defined my Minn. Stat. 116U.26 (b)(2). Film means a feature film, television or Internet pilot, program, series, documentary, music video, or television commercial, whether on film, video, or digital media. Film does not include news, current events, public programming, or a program that includes weather or market reports; a talk show; a production with respect to a questionnaire or contest; a sports event or sports activity; a gala presentation or awards show; a finished production that solicits funds; or a production for which the production company is required under U.S. Code Title 18 Sec. 2257, to maintain records with respect to a performer portrayed in a single-media or multimedia program.
Published August 23, 2021
Above the line (ATL) in film production refers to the costs of making a movie associated with the major creative talent. The people in these positions make major decisions about the look and feel of the project. Above the personnel typically includes the director, principal actors, writers, and producers.
Applicants will provide line item detail for all above the line positions when completing the project’s Budget Overview Worksheet. The program administrator may limit the number of individuals listed as ATL on a case-by-case basis.
Published October 4, 2022
No. However, the business must be registered and in good standing to conduct business in Minnesota. Information on how to register your business is published by the Minnesota Secretary of State.
Published August 23, 2021.
Only above the line (ATL) compensation paid to one non-resident producer, one non-resident director, and non-resident principal acting talent employed in the production of a film is eligible. This expense is capped at the first $500,000 in wages, provided that required Minnesota withholding taxes are remitted. Individuals that hold more than one position are only eligible once.
Above the line compensation paid to all non-resident principal acting talent, one non-resident producer per episode, and one non-resident director per episode is eligible. Eligible expense is capped at the first $500,000 in wages for each individual in those roles, provided that required Minnesota withholding taxes are remitted. Individuals that hold more than one position are only eligible once. For projects that expend a minimum of $5,000,000 of qualified expenditures, below the line compensation paid to non-residents of Minnesota employed in the production of a film are eligible for a 15% incentive. Projects that expend less than $5,000,000 of qualified expenditures are NOT eligible for below the line incentives for non-Minnesota residents.
Revised February 2, 2024.
Calendar days.
Projects that are delayed must notify the Program Administrator and may request one 30-day extension by written request at FilmInMN.DEED@state.mn.us.
Failure to begin the project on time or request an extension may result in revocation of the Credit Allocation Certificate. Credit Allocation Certificates that have been revoked are returned to the available credit pool. An applicant that had their Credit Allocation Certificate revoked may reapply; this application will be evaluated as a new application without priority.
Revised February 2, 2024
No, it is the responsibility of the credit recipient to utilize or assign (transfer) the tax credit.
Published August 23, 2021.
The recipient of a Tax Credit Certificate claims the credit upon filing a Minnesota income tax return for the year the eligible expenses were incurred. The recipient of a Tax Credit Certificate may, in the alternative, assign (transfer) the certificate to another taxpayer before any amount of the credit is claimed. An assignment is not valid unless the assignee files an assignment within 30 days of the date the assignment is made. A confirmation letter will be issued after the administering agency has processed the assignment.
The Minnesota Department of Revenue oversees the assignment and claiming of credits. For questions on claiming the credit, visit www.revenue.state.mn.us/film-production-credit or email businessincome.tax@state.mn.us.
Revised October 28, 2022
After a tax credit certificate is issued, we notify the recipient by email. If you are unable to access your tax credit certificate, contact us at FilmInMN.DEED@state.mn.us.
Revised February 2, 2024.
Only the Minnesota Department of Revenue can provide this information. Please visit their web page for information on how to assign (transfer) the credit, file your tax return, or check the status of a filed tax return.
Published August 23, 2021.
Wages for the Minnesota resident on the day they are in travel status is considered a Minnesota qualified expense. Wages for work performed on subsequent days outside of Minnesota is a non-qualified expense.
Intrastate transportation and parking costs including travel by airplane, taxicab, train, bus, mileage reimbursements, leased vehicles, and fuel used and consumed in leased vehicles is a qualified expense.
All interstate travel is a non-qualified expense.
Published July 19, 2022
Approved projects are required to promote Minnesota 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. Approved logos are published on the program page under the More Information tab in the Approved Project Logos section.
The approved logo must be prominently displayed and can share the viewable image with other images or text. Superimposing the approved logo is acceptable only with the program administrator’s prior written approval. To obtain approval, send a high resolution visual mock up that includes five seconds before and after the displayed image.
Published July 19, 2022
Certified public accountants (CPA) licensed in Minnesota are encouraged to list their services in the Minnesota Production Resources Guide. The Film Production Tax Credit Program is new to Minnesota so check the guide often for new entries.
The Minnesota Board of Accountancy has an online tool that can be used to validate that the CPA firm or individual licensed as a CPA that you selected holds an active license.
Published July 19, 2022
Yes. Film Production Tax Credits should be claimed for the tax year of issuance. The recipient of a Film Production Tax Credit Certificate may, in the alternative, assign the certificate to another taxpayer; this assignment must be made prior to claiming any of the credit.
A credit assignee may not assign the credit to another taxpayer. Minn. Stat. 116U.27 subd. 3 allows only the credit certificate recipient to assign the credit to another taxpayer, it does not allow an assignee to assign the credit.
Published October 13, 2023
