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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Connecticut's unique blend of historic charm and modern amenities makes it a filmmaker's paradise.
The state boasts a rich array of eye-catching locations—from the colonial architecture of towns like Mystic and Old Saybrook to the contemporary skylines of Stamford and Hartford. Whether you're shooting a period piece or a cutting-edge thriller, Connecticut has the versatility to meet your creative needs.
Coupled with the state’s abundant beauty and close proximity to major hubs like New York City and Boston, robust Connecticut film incentives make a compelling case for production in the Nutmeg State.
These Connecticut film tax credits have made possible feature films including Revolutionary Road and Indiana Jones and the Kingdom of the Crystal Skull. Lately, a host of scripted and unscripted television series have also capitalized on Connecticut film incentives.
In an effort to bolster its economy and attract media production, the Connecticut General Assembly established the Connecticut film tax credit in 2006. Recognizing the potential for job creation and increased economic activity, the state introduced these incentives to make Connecticut more competitive in the film industry.
Since its inception, the Connecticut film incentive program has undergone several refinements to better serve production companies and the local workforce. The result is a robust set of incentives that not only attract big-budget films but also support independent filmmakers and digital media productions.
At the core of Connecticut film incentives is the Digital Media & Motion Picture Tax Credit, a fully transferable tax credit of 10% to 30% on qualified production expenses.
Transferable tax credits can be sold or transferred to another taxpayer if your production company doesn't have sufficient tax liability in the state. In Connecticut, these transferable tax credits also have a carry-forward of five years, meaning they can be used up to five years after they are issued.
In order to be eligible for the Connecticut film tax credit, productions must spend at least $100,000 on qualified expenditures in the state. The Connecticut film tax credit is also tiered with benefits increasing as your in-state spending grows.
Productions can receive:
The Connecticut film tax credit has no project cap and no annual cap, which means there is no preset upper limit on the amount of money a project can receive in tax credits and no limit on the amount Connecticut can dish out per year in credits.
To qualify for the Connecticut film tax credit, productions must meet at least one of the following criteria:
This means that post-production only projects can qualify for Connecticut film tax incentives, making the program a huge draw for unscripted shows that can perform all their post in the state and see savings in the form of a tax credit.
Along with the Digital Media & Motion Picture Tax Credit, there are two additional Connecticut film incentives.
Connecticut offers a 10% to 30% transferable tax credit for digital animation companies that meet specific requirements.
In order to qualify for the animation production company tax credit, animation production companies must maintain studio facilities located within the state AND employ at least 200 full-time employees within the state.
Qualifying projects must spend at least $100,000 in state in order to be eligible for credits, just like projects qualifying for the Digital Media & Motion Picture Tax Credit. The credit is also tiered in the same way as the Digital Media & Motion Picture Tax Credit and has the same spending thresholds.
Finally, the Digital Animation Production Company Tax Credit is capped at $15 million per company, per year.
Connecticut also offers a 20% tax credit for film infrastructure investment in the state.
To qualify for the credit, projects must invest at least $3 million in a state-certified entertainment infrastructure project that provides buildings, facilities, or installations needed for the digital media and motion picture industry in Connecticut.
A wide array of productions can qualify for Connecticut film incentives, including:
Eligibility for Connecticut film incentives extends to any "eligible production company," which includes any corporation, partnership, limited liability company, or other business entity engaged in producing a qualified production and registered to do business in Connecticut.
So what expenses qualify for Connecticut film tax credits? The simple answer is any production-related expenditure incurred in the state of Connecticut, be it for pre-production, production, or post, can qualify for tax credits.
Qualified expenditures can include everything from compensation paid to cast and crew to production expenses like equipment rental, set construction, wardrobe, and goods and services for post-production. As long as these expenses are incurred in the state of Connecticut, they can count.
Connecticut film tax credits are also applied flatly to all eligible expenses, meaning that if your production meets the minimum criteria for the 15% credit tier, all qualified spend will be eligible for a 15% tax credit.
When it comes to payroll, it is important to note that only the first $20 million paid in aggregate to “star talent” is eligible for tax credits. Compensation exceeding $20 million in aggregate paid to these above-the-line performers will not qualify and all compensation must be subject to Connecticut personal income tax.
Additionally, Connecticut requires productions to conduct a full independent audit of their in-state production expenses before receiving their film tax credits. Expenses related to the required independent audit, including compensation paid to the CPA, are not eligible for the tax credit.
By keeping these rules in mind as you strategically plan your production’s Connecticut budget, you can make the most of Connecticut film incentives and maximize your savings.
To successfully claim the Connecticut film tax credit, your production must adhere to a few specific requirements set forth by the Office of Film, TV & Digital Media and Department of Economic and Community Development (DECD).
Chief among these are Connecticut’s minimum spend requirement and qualification criteria. Again, projects must incur at least $100,000 in qualified production expenses within Connecticut and meet at least one of three qualifying criteria: 50% of principal photography in CT, 50% of post-production budget spent in CT, or at least $1 million spent on post-production in CT.
Additionally, applicants for the tax credit must be a corporation, partnership, limited liability company or other entity registered with the Connecticut Secretary of State to do business in the state.
Any loan-out company paid by the production must also be registered in the state of Connecticut in order for those payments to be eligible for the tax credit. Productions should ensure all compensation subject to the Connecticut personal income tax is properly withheld and reported.
After your project is completed, you must receive a full independent audit of all production expenses and costs and submit the results of that audit as certification in order to receive your tax credit. Productions must use an audit professional from the list compiled by the DECD.
As mentioned earlier, Connecticut film tax credits are a transferable credit. In order to transfer your tax credit for more than 25% of its value, applicants must be a Connecticut corporation subject to Connecticut corporate tax, conduct some portion of the production at a qualified Connecticut facility, or own at least 50% of another Connecticut LLC.
To secure a Connecticut film tax credit, productions must complete a two-step application process.
The first step is applying for an eligibility certificate, which simply certifies that the production company is eligible to earn the tax credits. Projects must apply for an eligibility certificate no later than ninety days after their first qualified production expense or cost is incurred in Connecticut.
Applications for an eligibility certificate can be made with the DECD. The application should include:
After production wraps and all credit eligible production expenditures have been made, a project can begin the second step of the application process by applying for a tax credit certificate.
Applications for a Connecticut film tax credit certificate must be submitted no later than 90 days after the last production expense is incurred in the state and must include an independent cost certification (a full audit) of the project’s eligible production expenses.
Applications for a tax credit certificate must include:
All necessary documents, including the Detailed Cost Report sheet, Budget Cost Qualifier, and Connecticut Vendor Report, can be found on the Connecticut Office of Film, TV & Digital Media’s website.
Once all submitted materials are verified, you'll receive a tax credit certificate specifying the amount of your Connecticut film tax credit.
With attractive film tax credits and a thriving creative ecosystem, Connecticut provides filmmakers with both financial and artistic advantages. Whether you’re producing an indie drama or a big-budget blockbuster, Connecticut has the tools and talent to make your project a success.
For more information about Connecticut film incentives and a comprehensive guide to production incentive programs across the country, visit Wrapbook’s Production Incentive Center!
Connecticut, known for its picturesque landscapes, historic charm, and modern urban settings, offers a diverse array of locations for film, television, and commercial productions. Beyond its visual appeal, the state provides substantial financial incentives through the Connecticut film tax credit program, making it an attractive destination for filmmakers.
In this comprehensive guide, we'll delve into everything you need to know about the Connecticut film tax credit. We'll explore how Connecticut film incentives came to be, who qualifies, what expenditures are eligible, and how you can apply to maximize your production's potential in Connecticut.
Before we embark on our journey through Connecticut film incentives, we invite you to explore Wrapbook's Production Incentive Center. This invaluable resource offers detailed, state-by-state insights into film tax incentives across the U.S., including the lucrative opportunities available in Connecticut.
Navigating the complex world of film tax credits can be daunting, but Wrapbook's interactive tools simplify the process. Use the State Incentive Map to compare Connecticut film tax credits with other states, or consult the Incentive Comparison Tool to see how Connecticut film incentives stack up against the competition.
Our AI Incentives Expert is always on hand to answer any questions and provide personalized incentives guidance. No matter what your production is or where you intend to shoot, Wrapbook’s Production Incentive Center has you covered.
