Minnesota film tax incentive

What Minnesota actually pays

A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.

New to the mechanics? Tax credit vs rebate vs grant, Selling a transferable credit and What counts as qualified spend.

What qualifies

Spend ≥$1,000,000 in MN on a single project within a consecutive 12-month period; prove project is ≥75% funded; employ Minnesotans to the extent practicable; remain in good standing with MN Secretary of State; obtain MN Dept. of Revenue tax clearance; display DEED-approved MN logo ≥5 seconds in end credits; independent CPA audit required.

• Animation
• Commercial
• Documentary
• Music Video
• Scripted TV
• Feature Film
• Post-Production

City, county & regional programs

Local incentives that can stack on top of the state program — but each defines its own qualified spend, caps and residency rules, so their rates can't simply be added to the state percentage. Worth a call before you count on one.

Best case here: Minnesota 25% + Duluth up to 30% ≈ 55% combined — each on its own definition of qualified spend.

• City of Duluth Production Incentive Program

  Narrow-base uplift: an additional 5% (25% -> 30%) only on eligible expenses paid to BIPOC-, veteran- or women-owned (>=51%) businesses located in Duluth. Base 25% multiplies production/post costs spent inside Duluth city limits.

  Minimum spend: $10,000 inside Duluth city limits

  25%–30%

• Iron Range Regional Production Incentive Program

  Flat 20% of production and post-production costs spent in the Iron Range Resources & Rehabilitation service area (Taconite Assistance Area); no uplift. Narrow-eligibility: only spend inside the service area counts.

  Minimum spend: $20,000 in the IRRR service area

  20%

• St. Louis County Production Incentive Program

  Flat 25% of production and post-production costs paid to St. Louis County companies and residents; no uplift. Narrow-eligibility: only spend inside St. Louis County counts.

  Minimum spend: $10,000 in St. Louis County

  25%

• City of Maple Lake Shamrock Film Rebate

  Flat 15% of qualified production costs paid to the City of Maple Lake or businesses inside its city limits; no uplift. Narrow-eligibility: scripted features/TV only (no docs, commercials, music videos); capped at $7,500 per production.

  15%

How to apply

Apply to Explore Minnesota Film on a rolling, first-come-first-served basis 30–180 days before principal photography. Receive a Credit Allocation Certificate/Letter BEFORE photography begins (prior expenses ineligible). Submit application + acknowledgements forms; complete CPA cost-verification (Agreed-Upon-Procedures); claim certificate on MN return (M4/M1C/M3/M8 etc.). Only production companies may apply.

Common questions

What is the Minnesota film tax incentive rate?

Minnesota offers 25% on qualified in-state spend through the Film Production Tax Credit. It is a transferable credit. A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.

What is the minimum spend for the Minnesota film incentive?

$1,000,000 (single project, consecutive 12-month period). Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.

Are there city or county film incentives in Minnesota?

Yes — City of Duluth Production Incentive Program, Iron Range Regional Production Incentive Program, St. Louis County Production Incentive Program, City of Maple Lake Shamrock Film Rebate. Local programs generally stack on top of the state incentive but define their own qualified spend, caps and rules, so their rates can't simply be added to the state percentage.

Is the Minnesota film incentive transferable or refundable?

Transferable — the credit can be sold, typically below face value, so model the net rather than the headline rate.

Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.