Jason M. Kohl | Contributing writer
Connecticut is one of the few states that receive incentives for television and film production to grow as a local industry, especially on the East Coast. These are known as film tax credits, or the “Digital Media & Motion Picture Tax Credit,” which has been fundamental in bringing the local media industry to the state. With a competitive 30% incentive for any ongoing production that qualifies, eligible expenses for the credit include pre-production, production, and post-production costs incurred directly in Connecticut. This includes expenditures on equipment, software, set design, construction, props, lighting, wardrobe, and compensation.
Public officials in Hartford have suggested ‘S.B 1246: An Act Concerning Revenue Items to Implement the Governor's Budget’ which proposes a 5% reduction in the incentive, sparking speculation in the local media industry about the future of expansion and its economic impact. Johnathan Black, a producer and a member of the Connecticut Film & Television Alliance, fears this will drive out competition and hurt productions that are already greenlit. During a quick chat, John told me, “Currently, we’re competitive—on par with Georgia at 30%. If we drop to 25%, we will be at the bottom of the barrel when it comes to the East Coast Film Tax Credit... Any current production being shot this year would be subject to the 25% tax credit instead of the 30% tax credit.”
On February 26th, a public hearing by the Finance Revenue and Bonding Committee was held regarding the problematic line item. Elza Libhart, a resident of Ridgefield and President of Lucas Artist TV and Film Music, among other companies such as Netflix and Disney, testified before the committee, alerting them to the number of job opportunities the tax credit continues to provide and the personal impact it will have on herself and other residents if lost. “When the tax credit went back up, I got the most amazing job offer to supervise music for a feature-length film, a high-budget film from L.A. looking to shoot in Connecticut because of the tax credit. I just got an email this week. They are looking elsewhere. They got nervous when they saw it might go down to 25%. So, I went from having this job that might make it possible so that I can send my girls to college without having massive debt to possibly not even having this job.”
Greg Schwartz, President of Night Fox Productions, presently faces a multimillion-dollar expenditure for their latest film and would be hurt by the reduction, as the new budget will affect all ongoing productions in the state. Schwartz testified that, "There is no difference between 25% and 0% when New York is at 30% and New Jersey is at 35% with bonuses.”
Finalizations to any cuts or propositions to add new items to the budget will not be determined until the near end of the 2025 Legislative Session. Anyone interested in making sure this tax credit remains in Connecticut should reach out to their local state representatives.
Comments