Economic development commissioner seeks overhaul of film tax credit program

Department of Economic and Community Development Commissioner David Lehman is having second thoughts on Connecticut”™s tax incentives for film, television and digital media production.

According to the CT Mirror, Lehman informed three legislative committees ”“ the Appropriations, Commerce and Finance, Revenue & Bonding committees ”“ that the film and digital media tax credits needed to be reconsidered.

“If there was a dialing back of certain programs that we oversee, that would be the one I would suggest that there”™s a discussion around,” Lehman said.

The incentive program went into effect in 2006 to encourage an expanded entertainment industry presence in Connecticut with tax credits up to 30% for qualified production expenses or incurred costs. The incentives did not have a cap, which Lehman stated created a problem.

“When you think about the cost of taxpayers versus the benefit of taxpayers, I think there is an open question,” he said. “Does the cost exceed the benefit here? I think that”™s something that General Assembly should explore.”

Lehman recommended either capping the credit at a certain dollar amount or reducing the 30% level for the credits.

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