HF 4108

as introduced - 90th Legislature (2017 - 2018) Posted on 03/21/2018 12:00pm

A bill for an act
relating to taxation; individual income; providing a refundable film production tax
credit; amending Minnesota Statutes 2016, section 290.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 39. new text end

new text begin Refundable film production credit. new text end

new text begin (a) A taxpayer is allowed a credit against
the taxes due under this chapter equal to 25 percent of film production and postproduction
expenditures made in Minnesota that are directly attributable to film production in Minnesota.
new text end

new text begin (b) For purposes of this subdivision, "film" has the meaning given in section 116U.26.
new text end

new text begin (c) Expenditures that qualify for the credit under this subdivision must be "production
costs" as that term is defined in section 116U.26 and must be subject to taxation in Minnesota.
new text end

new text begin (d) If the amount of the credit under this subdivision exceeds the taxpayer's tax liability
under this chapter for the taxable year, the amount of the excess must be refunded to the
taxpayer. The amount necessary to pay the refunds under this subdivision is appropriated
annually from the general fund to the commissioner of revenue.
new text end

new text begin (e) The recipient of a credit certificate may assign the certificate to another taxpayer,
who is then allowed the credit under this section. An assignment is not valid unless the
assignee notifies the commissioner within 30 days of the date that the assignment is made.
new text end

new text begin (f) Credits granted to a partnership, a limited liability company taxed as a partnership,
S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
owner based on their share of the entity's assets or as specially allocated in their
organizational documents or any other executed agreement, as of the last day of the taxable
year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end