MN SF3992

Establishes a refundable film production tax credit equal to 25 percent of direct production expenditures and postproduction expenditures made in Minnesota, with an additional 5 percent credit for television pilots, series, and qualified production facilities.

Creates a $110,000,000 annual allocation cap for credit certificates, with a maximum individual budget claim of $210,000,000; unallocated amounts from 2021-2023 (up to $20,000,000) may carry over to the following year.

Requires film production companies to apply through the Department of Employment and Economic Development, pay a $500 application fee, confirm Minnesota acknowledgment in credits, and provide detailed expenditure documentation; credits may be assigned to other taxpayers.

Allows credit claims under $2,000,000 to be claimed immediately; claims of $2,000,000-$4,999,999 split evenly over two years; claims of $5,000,000+ split evenly over three years, with excess credits refunded to taxpayers.

Requires annual reporting by production companies on Minnesota resident wages, employment numbers, and hours worked, and mandates the Department report to legislature by March 15 each year on credit issuance and economic impact; effective for productions beginning principal photography after December 31, 2020.