This bill amends the film production credit provisions in Minnesota Statutes, specifically section 116U.27, to enhance the economic development of the film industry in the state. Key changes include the replacement of the term "certificate" with "letter" in the context of allocation notifications to taxpayers, and the introduction of new definitions such as "below-the-line crew position," "key creative role," and "Minnesota script or screenplay production." The minimum expenditure requirement for taxpayers to qualify for the credit has been reduced from $1,000,000 to $400,000, while a new threshold of $150,000 is established for television commercials and Minnesota script productions. Additionally, the credit percentage is increased from 25% to 40%, with the potential for an additional 5% credit if certain conditions are met, such as employing Minnesota residents in key creative roles or below-the-line positions.

The bill also outlines the application process for the credit, requiring taxpayers to submit applications to the director, who will issue allocation letters upon approval. The director is tasked with reporting on the credit's impact, including the number of applications and certifications issued, as well as the economic effects on Minnesota's job market. The provisions of this bill are set to take effect on July 1, 2026.

Statutes affected:
Introduction: 116U.27