Bill Threatens Film Production Tax Credit

The state’s film production tax credit is under threat from a bill currently before the legislature’s Finance, Revenue, and Bonding Committee.
HB 5110 eliminates the tax credit, which is available to companies that produce qualified entertainment content wholly or in part in Connecticut.
Controversial since its inception in 2006, the tax credit covers activities that include the production of: (1) motion pictures, (2) television programming, (3) sound recordings, (4) music videos, (5) video games, (6) commercials (infomercials are ineligible) and (7) certain interactive websites.
Previous studies by the state Department of Economic and Community Development were mixed about the effectiveness and return on investment of the credits.
A 2022 state-commissioned study by Olsberg SPI found that for every dollar of tax credit outlay, there was $4.80 in additional value generated by the entertainment content production industry in Connecticut.
Rare for a proposed bill, House Majority Leader Jason Rojas (D-East Hartford) joined House Republican Leader Vincent Candelora (North Branford) to introduce the bill.
Opposition
CBIA and dozens of other businesses, industry employees, municipalities, and trade associations, including the Motion Picture Association, opposed the measure.
Unlike many other credits, the film production tax credit can be sold or transferred to other eligible companies.
The Insurance Association of Connecticut and the National Association of Mutual Insurance Companies opposed the bill, testifying that “Connecticut’s digital media tax credit appears to be one of the most popular tax credits that insurance carriers purchase.”
The ability to purchase these credits has made Connecticut more competitive across numerous industries.
This ability to purchase these credits has made Connecticut more competitive across numerous industries, helping create and retain jobs not only in entertainment content production but various other sectors.
The elimination of this credit will not only lead to significant losses in the entertainment content production industry and its vendors, but also likely lead to workforce reductions and lost investment in a number of industries.
The bill now awaits committee action by its April 4 deadline.
For more information, contact CBIA’s Chris Davis (860.244.1931).
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First, a big thanks for your efforts for everyone in our state. Thank you also for your coverage.
I am part of a meetup group that meets in Guilford, Stamford, New Haven, Danbury, and Hartford. Our sessions have revolved on creating an awareness within our group so we can get our heads around the controversies of a “film industry” in our state. We are major proponents for it, as professionals living and working here for a number of years (mostly lifers). It has concerned us as to the state of the incentive program, and how the existing advocacy groups have positioned themselves as “saviors.” We wish more voices would be recognized at the Capitol, and not just the self-appointed “leaders” of advocacy coalitions, alliances, mixers, film festivals, etc. Thank you for your work. Below are our summarized notes from recent meetings:
First, a clarification on a film industry vs. broadcast, news, sports:
Much of the state’s reported “film success” is actually driven by live sports broadcast, talk shows, and corporate media rather than traditional cinema.
1. Is Connecticut a major film-production center?
No. Compared with traditional production hubs such as Los Angeles, New York City, and the production infrastructure built in Georgia, Connecticut has a relatively small production footprint.
For decades, Connecticut’s strongest media employers have generally been sports, corporate communications, advertising, and certain specialty television operations rather than a large-scale scripted film ecosystem. The presence of entities such as ESPN and WWE has often created the impression of a broader entertainment industry than actually exists for narrative film production.
The reality is that many Connecticut-based crew members either:
commute into the New York market,
work on commercials and corporate productions,
work remotely in post-production or media services,
or leave the state for larger productions.
That observation is broadly consistent with what many crew members and union workers report.
2. Is Hollywood itself struggling?
The larger point is also correct: the challenges facing Connecticut are occurring during a period when even the largest production centers are experiencing contraction.
The entertainment business has been affected by:
streaming consolidation,
reduced content spending,
advertising pressure,
post-pandemic market adjustments,
industry strikes and their aftermath,
corporate debt reduction efforts.
As a result, employment opportunities in scripted film and television have declined across much of North America compared with peak production years.
That means Connecticut is trying to attract production during a period when even established production centers are competing aggressively for fewer projects.
3. Why do some advocates continue promoting Connecticut as a film destination?
Several reasons:
Economic-development logic. State officials often view film incentives as a way to attract outside spending.
Historical memory. Some advocates still reference the period roughly between 2006 and 2008 when Connecticut’s incentive programs generated significantly more production activity.
Local interest groups. Producers, studio owners, training organizations, event organizers, and consultants naturally benefit if the industry grows.
The existence of these incentives does not necessarily mean Connecticut is poised to become a major production center; it simply means there are stakeholders who believe growth is possible.
4. Are the criticisms of Connecticut’s incentive program reasonable?
Many of them are.
The criticisms you list are common critiques of film-tax-credit programs nationwide:
benefits may flow primarily to outside productions,
jobs may be temporary rather than permanent,
economic-impact estimates can be disputed,
states can end up competing against one another in a subsidy race,
incentive programs can be politically vulnerable.
The criticism regarding a relatively small enhanced-credit pool is also understandable. If a supplemental incentive fund is too small, major productions may not view it as a decisive factor when choosing locations.
5. Why does sports broadcasting appear healthier?
This is probably the most important distinction.
Film production and sports broadcasting are not the same industry economically.
A scripted drama may arrive, shoot for several months, and leave.
Sports-media operations often involve:
year-round employment,
permanent facilities,
recurring programming,
technical operations,
transmission infrastructure,
editing and production staff.
For example, a company such as ESPN operates continuous media production rather than temporary location-based filmmaking.
Consequently, policymakers sometimes view incentives aimed at retaining a permanent employer differently from incentives aimed at attracting transient productions.
6. Could film incentives be shared with unscripted productions or nonprofits?
Yes, in theory.
A state legislature could design a program that covers:
documentaries,
reality television,
sports programming,
educational media,
nonprofit media initiatives,
children’s programming.
Whether that is good public policy is a separate question.
For an organization such as Voices for Children, policymakers would have to determine:
whether the goal is workforce development,
community media production,
educational content creation,
or economic development.
Those are different objectives from attracting commercial film productions.
7. Is Connecticut the “end-all, be-all” for film careers?
Objectively, no.
There is little evidence that Connecticut is currently a premier destination for building a career in scripted film production.
At the same time, it would also be inaccurate to say there are no opportunities at all. Opportunities exist in:
sports media,
corporate production,
commercial production,
documentary work,
regional television,
New York-adjacent production work.
The stronger argument is not that Connecticut has no media industry; rather, it is that Connecticut’s media industry is substantially different from the large-scale film-production ecosystems found in places such as Los Angeles, New York City, or major incentive-driven production centers such as Georgia.
Viewed that way, the central policy question is less “How do we recreate a Hollywood-style industry in Connecticut?” and more “What type of media industry can Connecticut realistically support and sustain given its workforce, infrastructure, proximity to New York, and fiscal priorities?” That is where the debate over tax credits, workforce development, sports broadcasting, and nonprofit media initiatives becomes most relevant.
Irony: Film business sectors in Connecticut face challenges to sustain a “thriving” industry, while Hollywood, New York, and Georgia seek ways to sustain themselves. Work isn’t abundant for the almighty Hollywood nor the television studios in terms of scripted entertainment; so why are some people in Connecticut stressing the Nutmeg state as the end-all, be-all for careers in film and broadcasting? Can a tax-incentive program be shared amongst un-scripted entertainment (such as sports television) with organizations and initiatives such as Voices for Children? Some key points gleaned from a recent forum consisting of aspiring film personnel meeting in Guilford:
The current state of Connecticut’s film industry is perceived as turbulent and struggling, particularly when compared to the declining output of film industries in major locations such as Los Angeles (Hollywood), New York, and Georgia. Several indicators highlight this situation (see below):
The film industry as a whole is experiencing significant transformation and contraction, and Connecticut has never been at the forefront as being recognized as a hub for production. Hollywood studios and television networks have themselves discussed an industry contraction, and pre-covid levels of employment in traditional, production/exhibition and scripted broadcasting are highly unlikely to come to fruition. This is evident from analyses, reports, and testimonies from industry executives and personnel across the major filmmaking hubs, none of which are located in Connecticut.
The state of Connecticut does not appear on industry lists categorizing the best or worst states for tax incentive programs; rather, it has been described as a challenging environment for building a career in film and as being non-existent (e.g. in an industry form). Efforts to establish productions and nurture what is termed “home-grown” talent have been largely unsuccessful for years (at least since 2008) due to a shortage of qualified film professionals and a frequently contested tax incentive program, which has been nearly phased out (as of 2026, the program still exists but offers reduced tax benefits).
This situation contrasts with the ongoing advantages for sports broadcasting in the state (e.g. ESPN, WWE), which continues to benefit from tax incentives unrelated to film and filmmaking, leading to further confusion and frustration among Connecticut residents as to who may possibly benefit from a rebate program.
Connecticut’s enhanced urban film tax credit—which offers up to 50% for productions shooting in Bridgeport, Hartford, and New Haven—is considered flawed primarily due to an extremely restrictive $1.5 million yearly cap. Critics argue this fund can be easily exhausted by a single major production, making the expanded credit too limited to attract widespread, large-scale filming.
Specific flaws include:
Low Funding Cap: The $1.5 million overall limit is minuscule for the film industry, with experts suggesting the figure should be applied “per production” rather than as a statewide maximum.
Stringent Time Requirements: To access the enhanced rate, productions must complete at least 20 days of principal photography in one of the three designated cities. This excludes shorter shoots or standard made-for-television movies.
Broad Industry Skepticism: The state’s broader film credit system faces ongoing political pushback and audits. Previous state reviews highlighted misreported numbers, uncompleted applications, and concerns that the incentives primarily benefit out-of-state studios and local insurance companies rather than creating permanent industry jobs.
Uncertainty Over Covered Expenses: There is ambiguity regarding exactly which local expenses and vendors qualify for the increased 50% match, causing concern that accounting difficulties may offset the benefits in cities lacking extensive production infrastructure.
Self-appointed representatives of Connecticut’s film industry have attempted to advocate for its revival, but their testimonies before the state congress have often been met with laughter and scorn. While not all speakers faced ridicule, reports indicated the presence of controversial emissaries whose remarks were deemed lacking in professional merit and authenticity, raising questions about the credibility of some attendees regarding their representation of the industry.
Local Workload: Consensus among Connecticut residents and IATSE consistently report that actual film and television production within Connecticut has been very slow. While you occasionally hear of production credits in Fairfield County, the bulk of local crew work involves corporate video, commercials, or commuting directly to NYC. Fairfield County also has taken severe hits due to talk shows being phased out and cancelled.
Union Representation: For major film and TV jobs, Connecticut crew members generally fall under the jurisdiction of IATSE Local 52, which spans both the New York and Connecticut areas, rather than a standalone CT local union.
This situation contrasts with the ongoing advantages for sports broadcasting in the state (e.g. ESPN, WWE), which continues to benefit from tax incentives unrelated to film and filmmaking, leading to further confusion and frustration among Connecticut residents.
Self-appointed representatives of Connecticut’s film industry have attempted to advocate for its revival (e.g. hoping to revive the 2006-2008 heyday in Connecticut), but their testimonies before the state congress have often been met with laughter and scorn. While not all speakers faced ridicule, reports indicated the presence of controversial emissaries whose remarks were deemed lacking in professional merit and authenticity, raising questions about the credibility of some attendees regarding their representation of the industry. Meetings billed as “jumpstarting” careers at festivals, seminars, and mixers in Connecticut have been criticized as expensive and exploitative. Reports and a conclusions found that these events were mainly made up of non-industry organizers, many of whom charge fees for their services purporting to be entry-ways into a film industry in Connecticut, and within a film industry, in general.
Local Workload: Consensus among Connecticut residents and IATSE consistently report that actual film and television production within Connecticut has been very slow. While you occasionally hear of production credits in Fairfield County, the bulk of local crew work involves corporate video, commercials, or commuting directly to NYC. Fairfield County also has taken severe hits due to talk shows being phased out and cancelled.
Union Representation: For major film and TV jobs, Connecticut crew members generally fall under the jurisdiction of IATSE Local 52, which spans both the New York and Connecticut areas, rather than a standalone CT local union.