Digital Animation Production Company Tax Credit

Overview

The State of Connecticut is home to an array of leading digital animation companies. These digital animation production companies may apply for a tax credit of 10 to 30%, based on the amount of qualified spending in Connecticut. The Office of Film, TV & Digital Media administers this tax credit on behalf of the Department of Economic and Community Development (DECD).

More information about the Digital Animation Production Company Tax Credit can be found on the website of the Department of Revenue Services.

Credit Details

The Digital Animation Production Company Tax Credit is based on the amount of qualified production expenses or costs the company spends in Connecticut, as outlined below:

Production Expenses or Costs	Potential Tax Credit
$100,000–$500,000	10%
$500,000–$1,000,000	15%
$1,000,000 or more	30%

Please note: Production expenses or costs refers to all expenditures clearly and demonstrably incurred in the state in the development, preproduction, production or postproduction costs of a digital animation production company.

Eligibility

The Digital Animation Production Company Tax Credit is available to state-certified digital animation production companies that engage in digital animation production activities on an ongoing basis. Your digital animation production company must:

maintain studio facilities located within the state, and
employ at least 200 full-time employees within the state.

For more information on these credits, you can review the links below.

How to Apply

A digital animation production company must apply to receive state certification in order to qualify for this tax credit.

You can find more details as well as all the forms you’ll need to claim the tax credit at the link below.
http://www.ct.gov/drs/cwp/view.asp?a=3807&q=523952

Contact

For additional information or questions, contact Ed Ruggiero, Film Tax Credit administrator, at (860) 500-2411 or Ed.Ruggiero@ct.gov.