Three tiers, and a cliff at $1 million
Connecticut sets one rate for the whole production based on total Connecticut spend. The statute's wording is what to budget against:
| Connecticut production expenses | Credit |
|---|---|
| $100,000 up to $500,000 | 10% |
| More than $500,000, up to $1,000,000 | 15% |
| More than $1,000,000 | 30% |
DECD's own summary table reads "$1,000,000 or more" for the 30% tier, but section 12-217jj(b) says "more than one million dollars." At exactly $1,000,000 the statute gives you 15%. Plan to clear the line with room to spare, because the audit will trim some costs.
The credit is a transferable tax credit, usable against the corporation business tax or insurance premium tax. It isn't refundable, so most independent productions sell it. Unused credit carries forward five income years.
Worked example: why $1,000,000 isn't enough
A Hartford-area feature with a $1,000,000 total budget. Some of it is spent outside the state.
| Scenario | Connecticut spend | Rate | Credit |
|---|---|---|---|
| Sound mix and color in New York | $920,000 | 15% | $138,000 |
| Same film, mix and color booked in Connecticut | $1,010,000 | 30% | $303,000 |
Moving $90,000 of post into the state more than doubles the credit. The extra $165,000 is bigger than the post budget that moved. That's why Connecticut budgets tend to cluster just above $1,000,000 of in-state spend, and why qualified spend tracking during production matters: a disallowed invoice that drops you to $995,000 costs half the credit.
Past the cliff: $5,000,000
With $4,300,000 of Connecticut expenses, the credit is 30%, or $1,290,000. Out-of-state costs never count, even for gear rented elsewhere and used in Connecticut. Star talent compensation is limited to $20 million in aggregate and must be subject to Connecticut income tax, which rarely touches a show this size.
The two certificates
- Register the production company with the Connecticut Secretary of State.
- Apply to DECD for an eligibility certificate no later than 90 days after the first Connecticut production expense. This confirms the company can earn credits; it isn't a reservation of money.
- Keep the one-of-three location test in view: 50% of principal photography days in Connecticut, 50% of post costs there, or at least $1,000,000 of Connecticut post.
- After the production, have an audit professional from DECD's list certify expenses. Public Act 25-165 lets the 90-day window for the tax credit certificate start after that independent certification is complete.
- Apply for the tax credit certificate and pay DECD's administrative fee, which is nonrefundable under PA 25-165. No interim credits are issued, so nothing arrives until the whole production is certified.
- If you sell, the seller and buyer file joint written notice within 30 days of the transfer.
Selling the credit and surviving review
Connecticut limits how much of a credit a production company can pass to a buyer, and buyers price that into what they pay. The state auditors' August 2026 follow-up report says companies could sell or transfer up to 78% of a credit before the 2024 income year, that the figure rose to 92% for 2024 and 2025, and that Public Act 26-68 extended the 92% rate for two more income years. Ask your broker how that applies to your buyer before you put a sale price in the finance plan.
The same report followed up on 13 recommendations from the auditors' earlier review, most of them about internal controls over how DECD administers the credits, and found 77% partially or fully implemented. Expect close review of your cost report, and hire an auditor who has done Connecticut film work before.
PA 26-68 also created an additional credit for productions shooting principal photography in Bridgeport, Hartford, or New Haven. DECD's program page doesn't yet publish its rate or rules, so ask the office before budgeting it.
The neighbors
New York, Massachusetts, and Rhode Island all run programs and share crew with Connecticut, so price at least one. Run the comparison in the incentive calculator, read how film tax credits work for the sale process, and browse the incentives hub.