SF 2276

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; requiring a study of tax incentives to certain industries;
providing a tax credit for film production expenditures; amending Minnesota
Statutes 2006, section 290.06, by adding a subdivision.

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

Section 1. new text begin STUDY OF INCENTIVES; PILOT PROJECT.
new text end

new text begin The commissioner of employment and economic development with the assistance
of the commissioner of revenue shall study the effectiveness of providing tax incentives
to certain industries in Minnesota and provide a written report and recommendations to
the legislature, in compliance with Minnesota Statutes, sections 3.195 and 3.197, by
February 1, 2012. The study must report on:
new text end

new text begin (1) the effect of the implementation of the tax credit provided in Minnesota Statutes,
section 290.06, subdivision 34; and
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new text begin (2) the estimated change in state revenues attributed to implementation of the tax
credit, including both the reduction in revenues due to the credit and the increase in
revenues due to the increased film production activity in the state that results from the
availability of the credit.
new text end

Sec. 2.

Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 34. new text end

new text begin Film production credit; appropriation. new text end

new text begin (a) A taxpayer is allowed
a credit against the taxes due under this chapter equal to 20 percent of film production
expenditures made in Minnesota that are directly attributable to film production in
Minnesota.
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:
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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;
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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
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new text begin (3) any of the following provided by a vendor:
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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;
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new text begin (iii) photography, sound synchronization, lighting, and related services;
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new text begin (iv) editing and related services;
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new text begin (v) rental of facilities and equipment;
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new text begin (vi) leasing of vehicles; and
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new text begin (vii) food and lodging.
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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, 2007, and before January 1, 2012.
new text end