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Qualifications
Only production companies are eligible to apply for the Film Production Tax Credit. Applicants need to meet these criteria to apply for a Credit Allocation Certificate:
- Apply at least 30 days but not more than 180 days prior to beginning principal photography in Minnesota. Post production only projects must apply at least 30 days but not more than 90 days prior to beginning project work
- 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, that promotes Minnesota within its presentation in the end credits for the life of the project. Television commercials are exempt from the requirement.
- 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
Qualified project types include:
- Feature film
- Television or internet pilot
- Program
- Series
- Documentary
- Music video
- Television commercial
Ineligible projects include but are not limited to:
- News, current events, public programming, or programs that include weather or market reports
- Talk shows
- A sports event or sports activity
- One-time production related to a national event (e.g. sporting or national political event)
- Contests and game shows
- Gala presentation or awards show
- Finished production that solicits funds
- Home shopping programming
- Local or regional television programming
- Political issue or advocacy ads
- Projects featuring candidates currently running for political office in Minnesota
- Branded content
- Video games
- Student films
- 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
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Eligible Expenses
Applicants are required spend a minimum of $1,000,000 on eligible expenses during a consecutive 12-month period. The dollar amount of the tax credit for an eligible project is based on the dollar amount of qualified expenses incurred in Minnesota and paid to a Minnesota company*. Tax Credit Certificates are issued for the taxable year in which the twelfth month of the consecutive 12-month period lands.
Eligible expenses include:
- Direct costs of production incurred in and paid to a Minnesota company including:
- Location expenses and permitting fees
- Health and safety equipment and testing fees
- Studio and soundstage rental
- Sets, props, and wardrobe including construction materials, purchases, box rental, kit fee, and rentals
- Equipment rental including camera, grip, lighting and expendables, generators, and fuel used and consumed in generators
- Lodging
- Food and catering including craft service, working meals, and crew meals. Alcoholic beverages are excluded and itemized receipts are required.
- Transportation and parking including intrastate travel by airplane, taxicab, train, bus, mileage reimbursements, leased vehicles, and fuel used and consumed in leased vehicles
- Editing and related post production expenses including legal fees relating to post production, labor contracts, and licensing of music
- Production insurance
- Production-related services, such as legal, accounting, and payroll processing fees incurred in and paid to a Minnesota company
- Below the line compensation paid to a resident of Minnesota employed in the production of a film (25% incentive—uncapped)
- Below the line compensation paid to non-residents of Minnesota employed in the production of a film that expends a minimum of $5,000,000 of qualified expenditures within Minnesota (Non-resident BTL personnel credit is capped at 15%).
- Above the line compensation paid to a resident of Minnesota employed in the production of a film. Eligible expense paid to a resident producer or director 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.
- Eligible expense paid to a producer is capped at no more than 10% of the total qualified expenditure.
- Per Diem and housing allowances paid to Minnesota residents and non-residents while working in Minnesota. Payments made in cash are not eligible.
- Short term production office rental in Minnesota, utilities used and consumed at the production office, production office equipment rental, and production office supplies paid to a Minnesota company.
- Digital media and storage devices and related processing including film transfer and dailies paid to a Minnesota company.
Ineligible expenses include but are not limited to:
- Alcohol and tobacco including props and consumables
- Development, marketing, and business set up fees
- Permanent office space including utilities, long term equipment rental, long term vehicle leasing
- Unpaid invoices
- Internal invoices including but not limited to equipment rental or studio space
- Fuel for personal vehicles
- Interstate travel by airplane, taxicab, train, or bus
- Online purchases
- Capital equipment purchases with the exception of portable hard drives
- Purchases sourced outside of Minnesota
- Wrap parties, gifts, recreation and entertainment
- Festival submission fees or related costs
- Expenses relating to illegal activities including citations, fines, or towing fees
- Damage or replacement fees due to accident, loss, theft or misuse
- Costs incurred in connection with the sale or assignment of the tax credit
*A Minnesota company is defined as a permanent business that has a physical address and is located in Minnesota, conducts business in Minnesota, and files a Minnesota tax return. The company must be registered and in good standing with the Secretary of State of Minnesota.
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Apply
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.
Step one: Pre-application consultation
Applicants need to schedule and participate in a pre-application consultation with DEED. Schedule an appointment by emailing filminmn.deed@state.mn.us.
Step two: Apply for a Credit Allocation Certificate
Credit Allocation Certificates are issued for a specific project. The $1,000,000 minimum spend requirement can be met during a consecutive 12-month period. No application fee is required. Applicants that submit an incomplete application will have the opportunity to correct the application; however, the application will not be given first-come, first-served priority until complete.
Download, complete, and submit the Film Production Tax Credit Application.
Here's what happens next:
- You will receive confirmation of your submission by email.
- If we need additional information, we will contact you; otherwise we will send you a Credit Allocation Certificate approval or denial email within 30 days.
Step three: Submit Project Start Certification Form
The applicant's project shall begin at the agreed upon project start date contained within the Credit Allocation Certificate approval notice. Failure to begin the project on time 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. Projects that are delayed must notify the Program Administrator and may request one 30-day extension by written request.
On the start date of the project, submit a Project Start Certification Form along with a call sheet. A sample call sheet template is available.
Here's what happens next:
- You will receive confirmation of your submission by email.
Step four: Submit Cost Verification Report
Within 30 days of project completion, the applicant shall commission a Cost Verification Report to be prepared by an independent certified public accountant (CPA) licensed in the state of Minnesota. This report must be prepared in accordance with generally accepted accounting principles and will verify the amount of eligible production costs related to the project. Provide the Cost Verification Report Guide and Agreed Upon Procedures and Final Production and Economic Impact Report to your CPA at the time of engagement. All report preparation costs are to be paid for by the production company and are NOT considered an eligible expense for the incentive program.
The production company submits the Cost Verification Report and Final Production and Economic Impact Report within 30 days of the report completion date.
Here's what happens next:
- You will receive confirmation of your submission by email.
- We will review the cost verification report and determine the final credit amount. If we need additional information, we will contact you or the CPA; otherwise we will issue a Tax Credit Certificate in approximately 90 days. The Tax Credit Certificate will not exceed the Allocation Certificate amount regardless of actual eligible expenditures. Tax Credit Certificates are issued for the taxable year in which the twelfth month of the consecutive 12-month period lands.
Step five: Claim or assign the credit
The recipient of a Tax Credit Certificate claims the credit upon filing a Minnesota income tax return.
The recipient of a Tax Credit Certificate may, in the alternative, assign 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 the Department of Revenue Film Production Credit site or email businessincome.tax@state.mn.us.
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Projects
View the list of projects the Film Production Tax Credit is benefiting.
View a list of completed projects that received a tax credit.
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More Information
View our Frequently Asked Questions.
For questions about applying, eligible expenditures, Credit Allocation Certificates, or Tax Credit Certificates contact:
For questions about assigning or claiming the credit, contact the Minnesota Department of Revenue at:
Other Program Information and Forms
Approved Project Logos
Static Images
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Industry Resources and Incentives
Industry Resources
The Upper Midwest Film Office is a non-profit organization that promotes and supports film production in the Northeast region of Minnesota. This organization is proudly supported by DEED and is a valuable regional partner promoting film and film related economic development activity.
Upper Midwest Film Office
Duluth, MN
218-461-1628
exec@uppermidwestfilmtv.org
Other Incentives
The MN Iron Range Film & TV Production Incentive provides a reimbursement of up to 20% of eligible expenses that originate within the Iron Range service area. This regional incentive program is administered by the Upper Midwest Film Office and may be used concurrently with the Film Production Tax Credit Program.
MN Iron Range Film & TV Production Incentive
admin@uppermidwestfilmtv.org
218-461-1628
The St. Louis County Film Production Incentive 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. This program is funded by St. Louis County and administered by the Upper Midwest Film Office and may be used concurrently with the Film Production Tax Credit Program.
St. Louis County Film Production Incentive Program
admin@uppermidwestfilmtv.org
218-461-1628
The City of Duluth Production Incentive 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. This program is funded by the City of Duluth and administered by the Upper Midwest Film Office and may be used concurrently with the Film Production Tax Credit Program and other local incentives.
City of Duluth Film Production Incentive Program
admin@uppermidwestfilmtv.org
218-461-1628
The Shamrock Film Incentive Program provides a 15% reimbursement up to $7,500 per production for qualified costs incurred in the City of Maple Lake. This program is administered by the City of Maple Lake and may be used concurrently with the Film Production Tax Credit Program.
Shamrock Film Incentive Program
320-963-3611
Fact sheet
