OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6919
AN ACT ESTABLISHING A TAX CREDIT FOR CERTAIN PRE-
BROADWAY AND POST -BROADWAY THEATER PRODUCTIONS.
Primary Analyst: CW 5/8/23
Contributing Analyst(s): EW
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $
Revenue Serv., Dept. GF - Revenue
Loss
None Up to 10
million
Department of Economic &
Community Development
GF - Cost 23,750 47,500
State Comptroller - Fringe
Benefits
1
GF - Cost 15,255 20,340
Revenue Serv., Dept. GF - Cost None Up to
75,000
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which establishes a tax credit for certain pre- and post-
Broadway productions, results in (1) a General Fund revenue loss of up
to $10 million annually beginning in FY 25, (2) an annualized cost of
$67,840 to the Department of Economic and Community Development
(DECD), and (3) a one-time cost of up to $75,000 to the Department of
Revenue Services (DRS).
Cost Impact Details
The bill results in an annualized cost of $67,840 to DECD to
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 42.82% of payroll in FY 24. 2023HB-06919-R000746-FN.DOCX Page 2 of 2
administer the tax credit for theater productions.
It is anticipated that DECD would require a 0.5 FTE position at an
annualized cost of $47,500 in salary and $20,340 in fringe benefit costs to
provide administrative oversight of the program, including the
processing of applications for initial certification and final certification,
as well as conduct any auditing necessary for an application for final
certification of the credit.
Additionally, the bill results in a one-time cost of up to $75,000 to DRS
in FY 25 for programming updates to the CTax tax administration
system and myconneCT online portal, and for form modification for
multiple tax types.
2
The Out Years
The annualized ongoing cost impact identified above would continue
into the future subject to inflation. The revenue impact identified above
would continue into the future subject to the $10 million cap on total
credits allowed annually under the bill.
2
Under the bill, the credit can be claimed against the personal income, corporation
business, insurance premiums, and utility companies taxes.