The Senate Committee on Commerce has pushed forward a bill that would fine tune the state’s “Hollywood East” laws, which provide tax breaks for the in-state production of films and digital media – including video games, infomercials, and interactive websites.
Substitute Senate Bill No. 249 requires that at least 50 percent of the total production of digital media or film be conducted in Connecticut to be eligible for the tax break. Current law requires that only 30 percent of the total work be produced in state.
The General Assembly’s continued interest in Hollywood East likely reflects the economic downturn in Connecticut and beyond. The state of the economy paired with the retirement of Jim Amann, former Speaker of the House, has resulted in a closer analysis of financial ramifications of the Hollywood East tax breaks. As a result, Connecticut residents will continue to see additional legislation aimed at ensuring that those benefitting from these tax breaks are returning significant dollars to Connecticut’s economy.
Stay tuned for more on the misnomer of “Hollywood East” this week.
-Dan Fitzgerald
[...] must be consistent in its message and approach to attract film and digital media businesses. The debates in the General Assembly over whether the tax credits are working as intended and changes to the credits appear to have left [...]