Minnesota Set to Offer Film Tax Credit
BY SCOTTIE KNOLLIN
Minnesota’s House and Senate have reached a deal similar to those offered in states like California and Georgia to create a $5 million-a-year tax credit for film and television production in the state. While it is a win for the film community, the agreed upon credit is much smaller than supporters had hoped. Some states provide credits of $50 million or more each year. In California, New York, and Georgia, the credits exceed hundreds of millions of dollars annually.
The Legislature unveiled the bill’s language during a special session to pass a budget. The budget is not only bound to pass both chambers this month, but Governor Tim Walz is also expected to sign.
Several entertainment unions, led by SAG-AFTRA, lobbied for the creation of a tax credit in Minnesota. Local and state supporters cited recent prominent projects, like FX’s “Fargo” television series, that have chosen other states or countries for filming despite being set in Minnesota. “Fargo”, the series, was shot in Alberta and Chicago throughout its three seasons.
Supporters have also brought up upcoming film shoots based on real-life people, like Bob Dylan and George Floyd, in arguing for a state tax credit. Rep. Dave Lislegard, DFL-Aurora, said, “At some point, they’re gonna tell that story, and we want that story to be told here. I guarantee you what - if we don’t create an incentive, and create jobs in an industry, they may come here and they may take a few shots…but they will leave, and they will take that moment - that moment in history that will forever be remembered - they will take it somewhere else.”
Prior to the currently proposed tax credit, Minnesota offered a rebate program to incentivize film production. The program faced inconsistent funding, which made it less interesting when compared to other states’ credit programs.
To divvy up the $5 million annual allotment for the new tax credit, qualified applicants will be considered and approved on a first-come, first-served basis. The program will expire in 2025, unless the joint chambers agree to renew it at the time.
Even without a strong tax credit, Minnesota has been home to many notable film productions: 1984’s “Purple Rain”, 1992’s “The Mighty Ducks”, 1993’s “Grumpy Old Men”, 1996’s “Fargo”, 2005’s “North Country”, and 2006’s “A Prairie Home Companion”.
