Film and television production companies can now apply for tax credits through the New Jersey Film Tax Credit Program, the New Jersey Economic Development Authority (NJEDA) announced. As part of the Garden State Film and Digital Jobs Act signed by Governor Phil Murphy earlier this year, the program is designed to spur economic growth and industry development by encouraging production companies to undertake projects in New Jersey.
In July, Governor Murphy signed Senate Bill No. 122, the Garden State Film and Digital Media Jobs Act, which provides tax credits equal to 30 percent of qualified film production expenses, or 35 percent of qualified film production expenses incurred for services performed and tangible personal property purchased through vendors whose primary place of business is located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer or Salem County. In order to be eligible, 60 percent of the film’s total production expenses (excluding post-production costs) must be incurred for services and goods purchased through vendors authorized to do business in New Jersey, or the qualified film production expense must exceed $1 million per production.
The program was designed to maximize its impact to New Jersey and local communities. This includes a bonus of two percent for applications accompanied by a diversity plan, which would include goals that prioritize the hiring of women and minorities. In addition, while “reality shows” are generally ineligible, production companies that own, lease, or otherwise occupy a production facility of at least 20,000 square feet in an Urban Enterprise Zone for at least two years—and make a capital investment of at least $3 million in that facility—are eligible.
An application and a complete list of eligibility requirements can be found at www.njeda.com/njfilmtaxcredit. The Digital Media tax credit is a separate application and is expected to be available in January.