Substitute House Bill No. 6919 with File No. 746 introduces a tax credit for production companies involved in pre-Broadway and post-Broadway theater productions in Connecticut. The bill defines eligible productions and related expenditures, including a cap of $250,000 per week on payroll expenses. The tax credit is set at 30% of the production and performance expenditures and can be claimed by shareholders, partners, or owners of certain business entities. The credit can be carried forward for three years and is transferable. The bill imposes a cap of $10 million on the total amount of credits allowed per fiscal year and includes penalties for fraudulent claims. It is effective from January 1, 2024, and applies to income and tax years starting on or after that date.

The bill outlines the certification process for claiming the tax credit, requiring production companies to apply for initial and final certification from the Commissioner of Economic and Community Development. The credit can be claimed against personal income tax or certain business taxes, and the bill mandates annual reporting on the status of applications and credits allowed. Fiscal notes indicate a potential General Fund revenue loss of up to $10 million annually beginning in FY 25, along with costs to the DECD and one-time costs to the DRS for system updates. The bill also limits the commissioners' power to audit or examine expenditures unless fraud is suspected but authorizes them to examine related books and records. The DECD commissioner must report annually to the Commerce and Finance, Revenue and Bonding committees on the previous year's certification applications.