Minnesota's credit has one hard gate. Spend $999,999 in the state and you get nothing from it. Spend $1,000,000 in any 12 consecutive months and you get up to 25% of every eligible dollar. Everything else about the program is fairly forgiving: the certificate is assignable, allocations are first come, first served, and unused money rolls forward.
The rules in Minnesota Statutes 116U.27
| Item | Rule |
|---|---|
| Rate | Up to 25% of eligible production costs |
| Minimum | $1,000,000 in eligible Minnesota costs within any consecutive 12-month period |
| Eligible formats | Feature films, TV or internet pilots, programs and series, documentaries, music videos, TV commercials |
| Promotion | Approved Minnesota logo in the end credits (commercials exempt) |
| Hiring | Employ Minnesota residents to the extent practicable |
| Annual allocation | $24,950,000, first come, first served; unallocated amounts stay available for four more years |
| Transfer | Assignable before any amount is claimed; notify Revenue within 30 days |
| Carryforward | Up to 5 years (nonrefundable) |
| End date | No credits for taxable years beginning after December 31, 2030 |
Explore Minnesota rounds the allocation to $25 million and reported roughly $90 million available on July 1, 2026 and about $86 million on September 1, 2026. That balance is more than three times a single year's allocation.
Eligible costs follow the production cost definition in 116U.26: story rights, salaries of talent, management, and labor (including personal services corporations), set construction and operations, wardrobe, photography, sound, lighting, editing, facility and equipment rentals, nonresident above-the-line talent fees, and post. Explore Minnesota's page says the first $1 million in wages for each above-the-line individual is eligible, provided Minnesota withholding is remitted.
A $1,000,000 feature in Minneapolis
Here the minimum bites. A $1,000,000 total budget almost never produces $1,000,000 of Minnesota costs, because some money always leaves the state: out-of-state post, airfare, insurance, the composer in Los Angeles.
- Budget: $1,000,000
- Eligible Minnesota costs within 12 months: $840,000
- Credit: $0
To qualify, the producer would need to move $160,000 more into Minnesota inside the same 12-month window, perhaps by doing picture and sound post in the Twin Cities. At $1,000,000 of eligible costs, the credit becomes 25% x $1,000,000 = $250,000.
A $5,000,000 production
A $5,000,000 feature spends $4,300,000 on eligible Minnesota costs over a 10-month prep, shoot, and post schedule.
- 25% x $4,300,000 = $1,075,000
There's no per-project cap in the statute, so the only limit is the allocation available when you apply. If the lead actor's Minnesota wages are $1,400,000, Explore Minnesota's guidance says only the first $1,000,000 is eligible, which trims $100,000 from the credit.
From allocation to certificate
- Apply to Explore Minnesota Film. An approved application gets an allocation certificate stating the anticipated credit (up to 25%) and the tax year.
- Shoot and post, tracking costs by date so you can prove the 12-month window.
- After completion, an independent CPA licensed in Minnesota prepares a cost verification report under GAAP.
- The director issues a credit certificate. It can't exceed the allocation, and any shortfall returns to the pool. Explore Minnesota says certificates typically come within 90 days of the cost report and final economic impact report.
- Attach the certificate to the Minnesota return (Form M4 for C corporations, M8 for S corporations, M3 for partnerships), or assign it first.
Proposals and regional money
In April 2026 the Department of Revenue analyzed S.F. 4634, which would have raised the rate to 40% (45% with conditions) and lowered the minimum to $400,000, starting with tax year 2027. As of Explore Minnesota's September 2026 page, the program still advertises 25% and a $1 million minimum, so budget on current law.
Regional programs can stack with the state credit. Explore Minnesota lists Duluth (up to 25% of production and post costs, with up to $200,000 available), the Iron Range (up to 20%), St. Louis County (up to 25%), and Maple Lake (15% on up to $50,000 of costs, $7,500 maximum).
Nearby states
Iowa runs a small studio-based rebate pilot. Wisconsin, North Dakota, and South Dakota also border Minnesota. Illinois pays 35% with a $100,000 minimum, which suits smaller shows that can't reach Minnesota's threshold. Test scenarios in the incentive calculator, review transferable tax credit and qualified spend basics, and read how film tax credits work. All states are on the incentives hub. Storiara's budgeting feature is one place to build the budget you'll spend within the 12-month window.