Tax credit for movies

Supporters of a new tax credit hope to lure the film industry — and its money — to Minnesota.

Rep. Greg Davids (R-Preston) sponsors HF2655 that would establish a 25 percent income tax credit for investing in film projects in the state. The House State Government Finance Committee approved the bill March 13 and sent it to the House Taxes Committee. A companion, SF2455 sponsored by Sen. Ted Daley (R-Eagan), awaits action by the Senate Taxes Committee.

Under the provisions, an individual or corporate taxpayer would be allowed an income tax credit equal to 25 percent of a qualified investment in a film production project in the state. Lucinda Winter, executive director of the Minnesota Film and TV Board, said the bill is intended to re-energize the state’s stagnant film industry.

“The reason for this, to be honest, is because our industry is in a state of contraction,” she said. “Other states, territories and jurisdictions are growing, and we are not.”

The credit would serve as a companion to the existing “Snowbate” program, which provides a 15-20 percent reimbursement for film production expenditures in the state. Winter said other states have programs similar to Snowbate, but fund them at higher levels. She said the proposed income tax credit might give Minnesota a competitive edge.

“There are very few states that have this,” she said.

Supporters include Rep. Steve Simon (DFL-St. Louis Park), who said he had the chance to visit the set of “A Serious Man” — the Coen brothers movie filmed in Bloomington — and saw firsthand the economic boon that film productions provide.

“You see the economic effects. You see the catering trucks, you see the lighting equipment, you see the other vehicles … Those are real people and real jobs,” Simon said.

Opponents include Rep. Ryan Winkler (DFL-Golden Valley), who said he sees no larger public purpose for the bill other than to add to the “endless string of industry carve-outs” lawmakers have put into the state’s tax code.