TRENTON – A new bill, designed to lure movie, television and other digital media projects to New Jersey, was signed into law Jan. 12.
The law increases the maximum tax credit amount for digital media productions to 35 percent of qualified expenses in South Jersey (30 percent in other parts of the state).
Under the initial tax credit program, digital media productions were eligible for tax credits equal up to 25 percent of their qualified expenses (20 percent in other parts of the state).
The new bill also increases the total amount of tax credits these projects could receive from $10 million to $30 million.
According to a release from New Jersey Assembly Democrats, the legislation is sponsored by Assembly Democrats Gordon Johnson, William Spearman, Raj Mukherji and Paul Moriarty.
Digital media projects often deal with post-production activities, such as editing and sound synchronization. Expenses could include the cost of computer hardware/software, visualization technology, and facility or equipment rentals – among others, according to the release.
Film-lease partners, who lease or acquire a large New Jersey production facility for five or more years and commit to spending an average of $50 million on qualified expenses each year, are eligible for tax credits under the film and digital media content production tax credit program, according to New Jersey Assembly Democrats.
This law revises the program to allow partners who lease a portion of a film production facility – rather than an entire facility – to qualify for tax credits, as long as they meet other criteria set forth in the program, the release said.
The law further incentivizes film-lease partners to acquire production facilities in the state by permitting an additional $100 million to be made available annually at the discretion of the New Jersey Economic Development Authority.
Beginning in Fiscal Year 2025, these additional tax credits could be made available using leftover funds from amounts previously allocated to certain programs under the Economic Recovery Act of 2020, according to the release.
