This tangible property includes the purchase of replacement parts for machinery, tools and other supplies, the purchase of lumber and hardware to build sets, the rental of picture cars, the purchase or rental of other types of props, and costs related to the repair of camera and lighting equipment
The Film Tax Credit Application Is Now Available Online
(https://www.njeda.com/njfilmtaxcredit)
The New Jersey Film & Digital Media Tax Credit Program provides a credit against the corporation business tax and the gross income tax for certain expenses incurred for the production of certain films and digital media content in New Jersey.The goal of the program is to incentivize production companies to film and create digital media content in New Jersey.
Should you require additional information, please call us at (973) 648-6279.New Jersey currently offers these financial incentives to filmmakers, and the US Government has an incentive program as well:
Certain tangible property used directly and primarily in the production of films and television programs is exempt from New Jersey's sales tax. This tangible property includes the purchase of replacement parts for machinery, tools and other supplies, the purchase of lumber and hardware to build sets, the rental of picture cars, the purchase or rental of other types of props, and costs related to the repair of camera and lighting equipment. To view the entire law, click here:
New Jersey has long held an attraction for producers, both for its locations and the tax credits offered by the state.[13]
Governor Christopher Christie suspended the credits in 2010,[14] but the New Jersey State Legislature in 2011 approved the restoration and expansion of the tax credit program.
Under bills passed by both the state Senate and Assembly, the program would offer 20 percent tax credits (22% in urban enterprise zones) to television and film productions that shoot in the state and meet set standards for hiring and local spending.[15][16][17] The tax credit is lower than that of other states offering similar incentives.[18][19]
A controversy arose in 2011, when[20] the governor threatened to veto the payment of tax rebates to the production company of Jersey Shore, a program he and others felt negatively portrayed New Jersey.[21][22]
As of 2014, a bill is under consideration in the Senate is that would extend the program and remove any caps on tax credits.[23][24][25]
Governor Phil Murphy restored the credits.[26]
Click here to view the New Jersey Senate Bill 122W
(Blair Robbins - On January 21, 2020, NJ Governor Phil Murphy signed into law A5580, expanding the state’s film tax credit. New Jersey revived its film tax credit program back on July 1, 2018, which has since been tremendously popular with film productions. The program provides for an incentive equal to 30% of the qualified production expenses with the ability to recoup an additional 5% for qualified expenses incurred in certain New Jersey counties. Applicants can receive another 2% with the approval of a diversity plan outlining specific goals, which may include advertising and recruitment actions, or the hiring of minorities or women.
The combined potential 37% tax credit—along with New Jersey’s diverse shooting locations, talent pool and proximity to major U.S. cities—has created significant demand for the program.
Recognizing this, and the opportunity it creates for the state, the amended statute not only increases the cap from $75 million to $100 million annually, but also extends the sunset date of the program five years until July 2028.
An additional benefit of the revised statute is that it allows for the carryover of any excess amount of the annual allotment to the subsequent fiscal year, provided the carryover amount does not exceed $50 million. With such a high level of demand for this New Jersey incentive, infusing additional monies into the program should hopefully allow the state to continue to attract film productions for years to come.)
The New Jersey Film & Digital Media Tax Credit Program provides a credit against the corporation business tax and the gross income tax for certain expenses incurred for the production of certain films and digital media content in New Jersey.
The goal of the program is to incentivize production companies to film and create digital media content in New Jersey.
For questions regarding the New Jersey Film & Digital Media Tax Credit Program, please contact the New Jersey Motion Picture and Television Commission at (973) 648-6279 or the New Jersey Economic Development Authority at (609) 858-6767.
Tax credit 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.
Tax credit equal to 20 percent of qualified digital media production expenses, or 25 percent of qualified digital media 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.
An applicant that seeks to increase its award through the use of a diversity plan shall submit a completed plan (see Form A - Diversity Plan) to NJEDA before the NJEDA may approve an application pursuant to the applicable program rules. An applicant may consult with the NJEDA regarding the requirements of the diversity plan in advance of submitting the plan.
The diversity plan shall identify how the applicant intends to prioritize actively recruiting and hiring African Americans, Hispanic, Asian Americans, Native Americans, and women in all areas of production of the film, specifically production crew and staff, entry level positions, management positions and talent related positions. Proposed actions by the applicant may include advertising and recruitment actions.
An overall goal of not less than 15 percent shall be utilized in the hiring of minority persons and women. All diversity plans must identify goals for hiring both minority persons and women.
The diversity plan will indicate whether and, if so, how the applicant intends to participate in training, education and recruitment programs that are organized in cooperation with New Jersey state colleges and universities, labor organizations, and the motion picture industry and are designed to promote and encourage the training and hiring of New Jersey residents who represent the diversity of the state's population. Such cooperation is encouraged but not required.
The diversity plan shall describe the efforts the applicant will make to ensure equal employment opportunities for minority persons and women in the recruitment, selection, appointment, promotion, training, and related employment areas.
The diversity plan shall identify specific actions to ensure equal opportunities for the following key creative positions and shall include an explanation as to how these actions will contribute toward achieving the overall goal in relation to these positions:
Producer
Director
Screenwriter
Highest paid lead performer
Second highest paid lead performer
Production Designer/Art Director
Design Supervisor
Director of photography
Camera operator
Music composer
Picture editor
In order for a film project to be eligible for tax credits under the NJ Digital Media Tax Credit Program, at least $2 million of the total digital media production expenses must be incurred for services performed and goods purchased through vendors authorized to do business in New Jersey and at least 50 percent of the qualified digital media content production expenses must be for wages and salaries paid to full-time employees in New Jersey.
Diversity Plan:
The primary objective of the 2% Diversity Tax Credit is to stimulate job growth by encouraging film productions to employ the services of women and minority persons. The structure of this program seeks to further ensure that equal employment opportunities are offered to “above-the-line” positions (generally, key creative positions) as well as “below-the-line” positions (all other production crew).