CT-1120 DA: Digital Animation Tax Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Form CT-1120DA is used to claim Connecticut's Digital Animation Tax Credit against corporation business tax or insurance companies and health care centers taxes. It reports DECD tax credit voucher details, credits applied to 2025, and credits available in 2026.
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 showing the available credit amount.
What you'll need
- DECD tax credit voucher information, including each voucher number, the year eligible expenditures were incurred, and the qualified credit amount. Attach a copy of Schedule A for each voucher.
- 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.
- For the credit computation, credit amounts earned for 2022 through 2025, amounts applied in 2022 through 2024, and amounts applied to 2025.
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. Use blue or black ink only, and do not staple.
- Claiming the credit before DECD issues a tax credit voucher.
- Leaving out credits shared with another combined group member. Members included in the 2025 Form CT-1120CU must include in Column D credits shared with and used by another member of the combined group.
Questions people ask
Which taxes can this credit reduce?
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 calculated?
The percentage depends on the amount of qualified production expenses or costs:
- At least $100,000 but no more than $500,000: 10%.
- More than $500,000 but no more than $1 million: 15%.
- More than $1 million: 30%.
Can the credit be assigned to someone else?
Yes. The credit may be assigned in whole or in part no more than three times.