In order to qualify for the transferrable credit, production companies must spend at least $1,000,000 in-state on a single project within a consecutive 12-month period.

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

Projects must make best efforts to hire Minnesotans.

An independent CPA audit is required.

Applying for a Minnesota Film Production Tax Credit is a multi-step process. To be eligible, applicants must meet eligibility requirements as stated in the program guidelines. 

Applicants must apply for and receive a Credit Allocation Letter prior to beginning principal photography. Any expense incurred prior to issuance of a Credit Allocation Letter will be ineligible.

Applications are accepted on a rolling basis and must be received at least 30 days—but no more than 180 days—prior to the start of principal photography. Allocations are made on a first-come, first-served basis. Only production companies may apply.

*Compensation paid to above-the-line producers and directors (both resident and nonresident) is capped at the first $500,000 in wages provided Minnesota withholding taxes are remitted. Individuals that hold more than one position are only eligible for one position.

Productions utilizing a “qualified production facility” are exempt from the cap.

A qualified production facility means a building, complex of buildings, or associated back-lot facilities primarily focused on the production and/or post-production of films, television, commercials, or audiovisual products that has either been in operation within the state of Minnesota for at least one year or has purchased or executed a five-year lease on a brick and mortar location within the state of Minnesota.

Below-the-line compensation paid to a resident of Iowa, Missouri or Wisconsin employed in Minnesota in the production of a film is credited at 22%.

Airfare is eligible for a 25% credit when booked through a Minnesota-based travel agent and Minnesota is the arrival or departure location.

†There is generally no withholding for loan-out companies provided they furnish a tax ID number or W-9. If they cannot provide these, the backup withholding rate of 9.85% would apply. Contact Explore Minnesota Film for more information.

All program guidelines and related forms may be found on the Explore Minnesota Film website.