Connecticut State Lifts Cap on Film and Digital Media Tax Credits

The State of Connecticut lawmakers agreed to lift the cap of the film and digital media tax credits.  Instead, changes have been made to attract more money and help ensure it is spent in-state.  The changes include the following (from The Hartford Business Journal):

• The Department of Economic and Community Development will now oversee the tax credits.
• The minimal film and digital animation productions must spend to qualify is now $100,000 (it was formerly $50,000).
• No out-of-state expenses will count and the credit amount will vary based on total expenses or costs.
• In-state expenses or costs between $100,000 and $500,000 are eligible for a 10 percent credit; between $500,000 and $1 million are eligible for a 15 percent credit; over $1 million continue to be eligible for a 30 percent credit.
• Lawmakers also changed the infrastructure tax credit to a flat 20 percent credit that is available only to companies that spend a minimum of $3 million. Infomercials will also no longer qualify for the film production tax credit.

Read more at http://www.hartfordbusiness.com/news10218.html.