MN SF2586

Establishes a live theater production partnership tax credit allowing individual and corporate taxpayers a 25 percent credit for tier-one productions and 35 percent credit for tier-two productions on qualifying labor and production expenditures.

Defines tier-one productions as pre-Broadway or long-run productions (over 8 weeks, 6+ performances weekly) with minimum aggregate expenditures of $100,000, and tier-two productions as 6-36 week runs (5+ performances weekly) with minimum expenditures of $50,000.

Requires applicant to be a theater producer, owner, or operator with an agreement with a Minnesota nonprofit sponsor organization within 50 miles of the qualified production facility (700+ seat capacity for tier-one, 200-699 seats for tier-two).

Limits labor expenditures to $100,000 per employee annually and scenic construction expenditures to $500,000 per applicant per production, with total tax credits not exceeding $2,000,000 in any calendar year.

Allows unused credits to carry forward up to five succeeding taxable years and permits transfer of credits to other taxpayers after 180 days from first expenditure, with Department of Employment and Economic Development required to report annually on program effectiveness and job creation.