30% DIGITAL MEDIA & MOTION PICTURE TAX CREDIT
Public Act No. 06-186 in the 2006 session, the Connecticut General Assembly established tax credits for the production of digital media and motion pictures in Connecticut. The legislation calls for a tax credit equal to 30% of qualified digital media and motion picture production, preproduction and postproduction expenses incurred in the state that exceed $50,000. The Connecticut Commission on Culture and Tourism (Commission) and its new Digital Media and Motion Picture Division will administer the program. The tax credit takes effect July 1, 2006 and applies to income years starting on or after January 1, 2006.
SALES TAX EXEMPTIONS
Conn. Gen. Stat. Sec. 12- 412(44)(A) provides that producers working on programs for television or radio broadcast are exempt from paying sales tax on certain materials. Included are such items as film stock and videotape stock.
Conn. Gen. Stat. Sec. 12-412(44)(B) provides that producers buying, renting or leasing motion picture or video production equipment or sound recording equipment for use in the state for commercial entertainment, commercial advertising or commercial education are exempt from paying sales tax on that equipment.
Click to download the Department of Revenue Services (DRS) Sales Tax Exemption Certificate (pdf) for film and video production.
To view the most recent policy statement regarding sales tax exemption download the Department of Revenue Service (DRS) Policy Statement 92(13) Taxation of the Audio or Video Production Process (pdf) or for more information Call Taxpayer Services at 1-800-382-9463 (in-state) or 860-297-5962 (from anywhere).
HOTEL TAX EXEMPTION
Conn. Gen. Stat. Sec. 12-408(1) provides that the 12% hotel occupancy tax only applies to the first period not exceeding thirty consecutive days. Accordingly occupancy beyond thirty days is not subject to the tax.
Content Last Modified on 6/30/2006 11:09:04 AM