HF 3226

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; income tax; providing a film production tax credit;
appropriating money; amending Minnesota Statutes 2004, section 290.06, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 32. new text end

new text begin 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 15 percent of film production expenditures made
in Minnesota that are directly attributable to film production in Minnesota. For purposes
of this subdivision, "film" means a movie, television show, documentary, music video,
or television commercial, whether on film or video; and "film production" means all the
activities related to (i) the preparation for shooting, (ii) the shooting, including processing,
and (iii) the editing and finishing of a film. For purposes of this subdivision, the following
is not a "film":
new text end

new text begin (1) news, current events, or public programming or a program that includes weather
or market reports;
new text end

new text begin (2) a talk show;
new text end

new text begin (3) a production with respect to a questionnaire or contest;
new text end

new text begin (4) a sports event or sports activity;
new text end

new text begin (5) a gala presentation or awards show;
new text end

new text begin (6) a finished production that solicits funds; or
new text end

new text begin (7) a production for which the production company is required under United States
Code, title 18, section 2257, to maintain records with respect to a performer portrayed
in a single media or multimedia program.
new text end

new text begin (b) Expenditures that qualify for the credit under this subdivision must be subject to
taxation in Minnesota and include:
new text end

new text begin (1) payment of wages, fringe benefits, or fees for talent, management, or labor to a
person who is a Minnesota resident for purposes of this chapter;
new text end

new text begin (2) payment to personal services corporations for the services of a performing artist,
if the performing artist receiving payments from the personal services corporation pays
Minnesota income tax; and
new text end

new text begin (3) any of the following provided by a vendor:
new text end

new text begin (i) the story and scenario to be used for a film;
new text end

new text begin (ii) set construction and operations, wardrobe, accessories, and related services;
new text end

new text begin (iii) photography, sound synchronization, lighting, and related services;
new text end

new text begin (iv) editing and related services;
new text end

new text begin (v) rental of facilities and equipment;
new text end

new text begin (vi) leasing of vehicles; and
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new text begin (vii) food and lodging.
new text end

new text begin (c) 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 is appropriated annually from
the general fund to the commissioner of revenue.
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, 2005. new text end