The bill amends New Jersey's Garden State Film and Digital Media Tax Credit Program by introducing a requirement that all original music and musical scores for film and digital media productions must be produced and recorded domestically within the United States or its territories. This new condition is added to the existing criteria for taxpayers to qualify for tax credits, which are set at 40% for New Jersey studio partners and 35% for other production companies based on their qualified film production expenses. The bill also includes a 30% tax credit for digital media content production under similar conditions. Additionally, it makes technical adjustments, including the deletion of certain language regarding tax credit verification reports and withholding requirements, while maintaining the overall structure and cumulative limits of the tax credit program.

Furthermore, the bill establishes a process for taxpayers who apply for tax credits but are not approved due to a lack of available credits, allowing them to receive their credits in the following fiscal year when credits become available. It mandates the submission of reports prepared by independent certified public accountants to verify tax credit claims and outlines the review process for these reports. The bill also clarifies definitions for key terms related to film and digital media production, including "New Jersey studio partner" and "qualified production expenses," while deleting previous language regarding compensation limits for highly compensated individuals. The act is set to take effect immediately and will apply to taxable years beginning after its enactment.

Statutes affected:
Introduced: 54:10A-5.39, 54A:4-12