State of Connecticut offering a 30% tax incentive to filmmakers

Combined with Connecticut’s proximity to the media center of New York City, the new state tax credit makes this state a very desirable location for filmmakers, according to Segalla.

Connecticut’s 30 percent tax credit for film industry productions puts it at or near the top of the list of state’s seeking to lure movie companies with tax breaks, Hamilton said. "Connecticut is the most aggressive," said Hamilton.

Hamilton said Connecticut is one of 21 states that provide some sort of incentives for movie productions. Only 17 states offer tax credits or rebates.

By all accounts, though no money has been paid out to date, Connecticut’s tax credit has been remarkably successful at luring major film projects to this state.

The list of big Hollywood names attached to these productions includes Steven Spielberg, Robert DeNiro, Sean Penn, Al Pacino, Harrison Ford, Kate Winslet, Hilary Swank, Meryl Streep, John Travolta and Robin Williams. Shooting locations have included New Haven, Bridgeport, Thomaston, and Kent.

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Segalla estimates movie productions with total budgets of some $300 million will film in Connecticut during 2007. Hamilton, however, cautions that not all of that movie money is being spent in this state by the production companies involved.

But the state’s economy is clearly benefiting from the film money being spent on hotels, restaurants, vehicles, labor and a multitude of retail items.

State lawmakers were so enthusiastic about the impact of last year’s film tax credit that they decided to expand the program to provide the 30 percent tax break for digital animation productions. The bill approved by the General Assembly also provides for a new 20 percent tax credit for investment in film industry infrastructure projects such as sound studios and an array of movie production and post-production facilities.

The bill is now awaiting Gov. M. Jodi Rell’s signature, but her aides said the governor hasn’t yet had a chance to review the legislation.

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"One of the important things that has to happen in Connecticut is for the movie industry to move here, not just pass through," said Litty. "To the extent that the infrastructure credit supports the process of establishing Connecticut as a long-term player in the film industry, it will help."

Segalla agrees. "The goal is to bring the industry here in whole," he said, "so that when someone needs a piece of equipment, they don’t need to go all the way to New York to get it."

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