Accredited Theater Production
Conn. Gen. Stat. § 10-419
What’s New
New Tax Credit for pre- and post-Broadway productions and live theatrical tours
Legislation establishes a new tax credit for production companies of eligible pre- and post-Broadway productions and live theatrical tours performed at qualified facilities in Connecticut. The legislation caps the total amount of these tax credits allowed to $2.5 million per fiscal year and is effective January 1, 2024.
Description and Applicable Taxes
For income or taxable years commencing on or after January 1, 2024, any production company that receives a final accredited theater production certificate may be allowed a credit equal to 30% of the production and performance expenditures of the accredited theater production. This tax credit is administered by the Connecticut Department of Economic and Community Development (DECD).
This tax credit may be applied against the taxes imposed under:
- Chapter 207 (Insurance Companies and Health Care Centers Taxes);
- Chapter 208 (Corporation Business Tax);
- Chapter 212 (Utility Companies Tax); and
- Chapter 229 (Income Tax).
Definitions
Accredited theater production means a for-profit live stage presentation that is a pre‑Broadway production, a post-Broadway production or a live theatrical tour,
and performed at a qualified production facility.
Production and performance expenditures means a contemporaneous exchange of cash or cash equivalent for goods or services related to the development, production or performance of or operating expenditures incurred in the state for an accredited theater production, including, but not limited to: expenditures for design, construction and operation, including sets, special and visual effects, costumes, wardrobe, make-up and accessories, costs associated with sound, lighting, staging, facility expenses, rentals, per diems and accommodations, and payroll, advertising and public relations expenditures and transportation expenditures.
Tax Credit Amount
A credit equal to 30% of the production and performance expenditures of the accredited theater production may be allowed.
Carryforward and Carryback Limitations
The credit allowed must be claimed for the income or taxable year in which the credit was earned and may be carried forward for not more than three immediately succeeding income or taxable years.
How to Apply
Any individual, firm, partnership, trust, estate or other entity that is a production company of an accredited theater production or a sole proprietor, owner or member of a partnership that is a production company of an accredited theater production may apply to the Department of Economic and Community Development (DECD) for initial certification of an accredited theater production.
Upon completion of the accredited theater production performance or performances, the production company must submit an application to DECD for a final certification of the accredited theater production.
If DECD approves a final accredited theater production certificate, they will:
- Issue the certificate to the production company and specify the amount of the credit allowed; and
- Report the final certification and the amount of the credit allowed to DRS.
Visit DECD’s website at www.ct.gov/DECD for more information regarding the application process.
Assignment and Transfer
Any tax credit allowed may be sold, assigned or otherwise transferred, in whole or in part.
How to Claim the Tax Credit
The amount listed on the tax credit voucher must be entered on Form CT‑1120 ATP, Accredited Theater Production Tax Credit, and must be attached to Form CT‑1120K, Business Tax Credit Summary, Form CT‑207K, Insurance/Health Care Tax Credit Schedule, Form CT-1040, Connecticut Resident Income Tax Return, and/or Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return. The tax credit must be claimed by the holder of the tax credit voucher in the same year in which the voucher is issued.
Where to Get Additional Information
Direct inquiries to:
Connecticut Department of Economic and Community Development
450 Columbus Boulevard
Hartford CT 06103
860-500-2411
Statutory and Regulatory References
Conn. Gen. Stat. § 10-419
Page Last Reviewed or Updated: November 8, 2024