EXCITING NEWS FOR FILM PRODUCTION IN CONNECTICUT
Castle Fires Entertainment is happy to announce that the Connecticut state legislature has passed an increase in the tax incentive program for film, television and digital production in specific areas in the state.
State lawmakers approved changes to the state’s film and digital media tax credit programs, extending a lucrative credit-transfer provision through 2027 while creating a new incentive aimed at attracting productions to Bridgeport, Hartford and New Haven.
The changes were included in the revised state budget package adopted by the General Assembly during this year’s session that ended May 6.
Under the legislation, certain transferable film tax credits can continue to be redeemed at up to 92% of their value through the 2027 tax year, instead of reverting to a lower 78% rate.
The higher redemption rate preserves more value for corporations that purchase the credits, which are commonly sold by film production companies to insurers and other large taxpayers seeking to offset state tax liabilities.
Lawmakers also created a supplemental film and digital media production credit for projects that spend at least one day filming in Bridgeport, Hartford or New Haven.
The added incentive provides credits ranging from 30% to 50% of eligible Connecticut expenses, depending on in-state spending, with productions spending more than $1 million qualifying for the maximum credit. The program would apply during the 2027 and 2028 tax years, with a total cap of $1.5 million, beginning July 1, 2027.
Chris Davis, vice president of public policy for the Connecticut Business & Industry Association, said the changes make Connecticut “significantly more competitive” in attracting TV and film productions while driving real economic activity in some of the state’s largest cities.
He said the changes send “a clear signal that Connecticut is committed to remaining a premier hub for film and digital media production.”
Check out the full article in Hartford Business (LINK).