CT-1120 DA: Digital Animation Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120DA is used to claim Connecticut’s Digital Animation Tax Credit. It reports DECD tax credit voucher details, credits applied to 2024 taxes, and credits available for 2025.
Who files this form
Use Form CT-1120DA to claim the Digital Animation tax credit as an eligible production company or an assignee.
The credit is available to state-certified digital animation production companies that engage in digital animation production activities on an ongoing basis. You cannot claim it until the Connecticut Department of Economic and Community Development (DECD) issues a tax credit voucher listing the available credit amount.
What you'll need
- DECD tax credit voucher information, including the voucher number, the year eligible expenditures were incurred, and the credit amount listed on the voucher.
- A copy of Schedule A for each tax credit voucher, attached to the form.
- The eligible taxpayer’s name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- If claiming the credit as an assignee, the assignor’s name and Connecticut Tax Registration Number, if available. Attach an explanation.
- Credit amounts earned for 2021 through 2024, amounts applied in 2021 through 2023, and amounts applied to 2024, as needed for the credit computation.
Common mistakes
- Using the wrong year’s form. Each form is year-specific, and the correct year’s form must be used.
- Completing the form in ink other than blue or black, or using staples. The form requires blue or black ink only and says not to use staples.
- Claiming the credit before DECD issues a tax credit voucher.
- Failing to attach a copy of Schedule A for each tax credit voucher.
- For members included in the 2024 Form CT-1120CU combined return, leaving out credits shared to and used by another group member. Include those credits in Column D.
Questions people ask
Which taxes can this credit offset?
The credit may be applied against Insurance Companies and Health Care Centers Taxes under Chapter 207 and Corporation Business Tax under Chapter 208.
When can I claim the credit?
All or part of the credit may be claimed in the year the production expenses or costs were incurred or in any of the three succeeding years.
How is the credit percentage determined?
The percentage depends on the amount of qualified production expenses or costs:
- At least $100,000 but not more than $500,000: 10%.
- More than $500,000 but not more than $1 million: 15%.
- More than $1 million: 30%.
Can the credit be assigned?
Yes. The credit may be assigned in whole or in part no more than three times.
Where can I find more information?
The form directs taxpayers to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.