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CONNECTICUT
SEPTEMBER 4, 2009
Connecticut Gov. Jodi Rell has announced that she will allow the budget bill passed by the General Assembly on August 31, 2009 to become law on September 8, 2009 without her signature.
For income years starting on or after January 1, 2010, the legislation would make numerous changes to the film production, film production infrastructure, and digital animation production credits. The changes include:
- Increasing the minimum expenditure for the film and animation production credits from $50,000 to $100,000, and making the credit amount dependant on the production's total costs so that production companies incurring production costs (1) between $100,000 and $500,000 would be eligible for a 10% credit, (2) between $500,000 and $1 million would be eligible for a 15% credit, and (3) over $1 million continue to be eligible for a 30% credit;
- Limiting credit-eligible compensation for all "star talent" featured in a film or digital media production to $20 million in the aggregate and requiring that the compensation be subject to Connecticut personal income tax;
- Requiring a production company to conduct at least 50% of its principal photography days in CT to be eligible for the credit;
- Moving up the phase-out date after which no out-of-state expenses count towards the credit from 1/1/2012, to 11/1/2010;
- Making infomercials ineligible for the film production credit;
- Excluding any costs related to an independent audit of film or digital animation production project costs that the DECD requires before certification;
- Requiring a production company to use an audit professional, chosen from a list the DECD compiles, to provide the independent certification of its production costs when it applies for a tax credit voucher;
- Eliminating a company's ability to obtain an interim film production tax credit;
- Requiring the DECD to charge a reasonable administrative fee to cover the costs of analyzing applications;
- Allowing the recovery of credit amounts from any entity that committed fraud or misrepresentation in claiming a credit and,
- Making the infrastructure credit a flat 20% and increasing the minimum qualifying expenditure from $15,000 to $3 million, and requiring that a project be 100% complete (rather than at least 60%) before it can receive a tax credit voucher;
For more information please contact:
Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427
jbessacini@castandcrew.com
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