Letter to the Editor: State Rep Opposes Repeal of Digital Animation Tax Credits

From State Rep. Livvy Floren (R-149).

In 2007, I was privileged to vote for a Digital Animation Production tax credit program that I believed would spur economic growth in Connecticut. And, it has! Encouraged by this credit, Blue Sky Studios moved from New York to Greenwich in 2008 and brought with it jobs and economic development. Unfortunately, there is legislation being considered this session that could leave Blue Sky’s future in Connecticut uncertain. It is my intention to oppose this legislation and work to keep Blue Sky here.

• Employ at least 200 full-time employees in Connecticut (permanent, non-seasonal employees who work at least 35 hours a week);
• Maintain an in-state studio facility in Connecticut;
• Conduct the digital animation production activity in Connecticut.

The current law limits companies like Blue Sky to a maximum $15 million per year cap on the total credits that may be awarded. These requirements set a precedent for a strong commitment to Connecticut and Blue Sky has certainly proved its loyalty to our state.

Based on the creation of the Digital Animation Production tax credit, Blue Sky Studios designed and constructed a state of the art animation studio in Greenwich and moved 280 employees from New York to Connecticut. In 2011, they expanded their studio and added more technical animators and other innovative positions. Today, Blue Sky Studios boasts an employee count of more than 500 highly skilled artists and programmers working in Connecticut—far exceeding the requirements to receive the tax credit. They have also been consistently growing with more than $50 million in annual expenditures in Connecticut. Blue Sky has produced the Ice Age series, Robots and Rio and is in the midst of producing the Peanuts Movie and Ice Age 5. Their success is unmatched.

It is essential to keep companies like Blue Sky Studios in Connecticut, which is why it is my intention to fight the proposed change to the percentage of tax liability. The reduction in tax credits would have an immediate and adverse effect on the Digital Animation Production tax program, directly impacting the ability to maintain current levels of employee headcount and creating uncertainty for future expansion. Changing the rules of engagement midstream is unfair and unacceptable.

I shall work to make sure “the winner is and remains”…Connecticut.