This bill amends the film production credit provisions in Minnesota Statutes, specifically targeting the definitions and eligibility criteria for the credit. Key changes include the replacement of the term "allocation certificate" with "allocation letter" and the introduction of new definitions such as "below-the-line crew position" and "key creative role." The minimum expenditure requirement for qualifying projects has been reduced from $1,000,000 to $400,000, while a new category for television commercials and Minnesota script or screenplay productions has been established, requiring a minimum expenditure of $150,000. Additionally, the credit percentage has been 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 filming outside the seven-county metro area.

The bill also outlines the application process for the credit, stipulating that taxpayers must submit an application to the director, who will issue allocation letters upon approval. The director is tasked with allocating credits on a first-come, first-served basis and must provide a report by January 15, 2025, detailing various metrics related to the credit's impact. The effective date for these changes is set for July 1, 2026. Overall, the bill aims to enhance the film production credit program to stimulate economic development in Minnesota's film industry.

Statutes affected:
Introduction: 116U.27