SB 385 Summary

• Increases the digital media tax credit rate for production expenses over $1 million from 30% to 30% (no change to rate itself, but expands applicability)

• For income years beginning January 1, 2022 and later, allows credits to be claimed against the new Connecticut pass-through entity tax (Chapter 219)

• Changes the credit limitation for Chapter 219 claims from 78% to 92% of the voucher amount, requiring at least 50% common ownership between the taxpayer and production company

• Extends the carryforward period for production tax credit vouchers issued on or after January 1, 2022 to five years following the year expenses were incurred

• Applies to entertainment content created in Connecticut including motion pictures, television programs, digital media, interactive games, and sound recordings