NJEDA Approves Changes to New Jersey’s Film and Digital Media Tax Credit Program

The New Jersey Economic Development Authority (NJEDA) The Board approved at its June Board meeting the proposed changes to the New Jersey Film and Digital Media Tax Credit Program rules, with the goal of attracting more production companies to film and create digital media content in New Jersey and encouraging the development of large-scale studios in the state.

The New Jersey Film and Digital Media Tax Credit was created by Governor Phil Murphy in 2018 and subsequently expanded through a series of legislative changes, including in 2021 as part of the New Jersey Economic Recovery Act of 2020 (ERA). The program helps strengthen the state’s economy by attracting film, television and digital production, and the associated economic benefits generated by these productions, such as the creation of permanent jobs, decent wages, business and increased tourism spending, infrastructure and community investment in production facilities, support for small businesses and local suppliers, and increased value expected from media exposure.

Since its inception, more than 68 productions have been approved for tax credits based on spending $766 million in the state economy. These tax incentives have helped attract major film and television productions to New Jersey, such as “Joker,” “West Side Story,” “The Many Saints of Newark,” and CBS’s “The Equalizer.”

“New Jersey has positioned itself as a go-to destination for the film and digital media industry under Governor Murphy’s leadership as we continue to attract productions from major studios to our state,” said the CEO. NJEDA, Tim Sullivan. “Our diversity of locations means you can film mountains, cities, beaches and farms all in the same day, while our best-in-class tax incentive program and unparalleled talent pool make New Jersey one of the most profitable places in the country to shoot a movie. It’s a powerful combination and the film industry has started to take notice.

The proposed new rules approved by the NJEDA Board of Directors address changes to the law, including an increase in the amount of tax credits available each year, specific tax credit allocations for long-term commitments end of major studio development projects, an expansion of the program’s diversity bonus, and an extension of the program’s schedule through 2034.

Sullivan noted that to date, more than half of the productions supported by the program have been approved for bonuses based on the inclusion of diversity plans for recruiting and hiring minorities and women.

“New Jersey’s Film and Digital Media Tax Credit program paves the way for our state to build on its legacy as a premier destination for major film and television productions,” New Jersey said. Secretary of State Tahesha Way. “Under Governor Murphy’s leadership, this program has brought many productions to our state, creating employment opportunities for people from diverse backgrounds and injecting millions of dollars into local businesses. This translates into long-term economic benefits and improved quality of life for these communities and their residents.

The changes approved by the Board address other statutory changes such as increasing the amount of tax credits available each year under the program to $100 million per state fiscal year for applicants who do not are not considered movie rental partners or studio partners, $100 million per state fiscal year for studio partners, $100 million per state fiscal year for movie rental partners and $30 million per fiscal year for digital media projects. Additionally, the proposed new rules include other statutory additions like an increase in the diversity bonus from 2% to 4% to encourage the hiring of local minority on-screen talent, which will help ensure that opportunities are available to qualified New Jersey residents from any country. backgrounds.

The statutory changes now allow the program to run until 2034 and increased the credit allowed for film projects from 30% to 35% of certain qualifying film production expenses. The digital media tax credit has also been increased from 20% to 30%. The rules establish annual reporting requirements for certain projects and allow the Administration to recover or reduce tax credit amounts for certain projects.

Proposed rules approved by the Board will be posted for public comment, after which the Board will consider final adoption of the rules.

In addition to the Film and Digital Media Tax Credit program, ERA is creating a suite of programs that includes tax credits to encourage job creation, new construction and brownfield revitalization; financial resources for small businesses; support for new healthy food supermarkets and retailers in food desert communities; and new funding opportunities for start-ups in New Jersey. More information on these programs is available at https://njeda.com/economicrecoveryact.

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