The bill revises New Jersey's film and digital media content production tax credit program to expand eligibility for tax credits by including wages and salaries of individuals whose income is exempt from New Jersey Gross Income Tax due to reciprocity agreements with other states. It amends existing legislation to define "New Jersey studio partner" and "New Jersey film-lease production company," establishing criteria for qualified film production expenses. The tax credit rates are set at 40% for New Jersey studio partners and 35% for other production companies, with specific conditions regarding expenses incurred in New Jersey and the timing of principal photography. The bill also introduces provisions for tax credit transfer certificates, allowing taxpayers to sell or assign their credits to enhance financial flexibility.

Additionally, the bill establishes a cumulative cap on tax credits available to different categories of taxpayers, with specific limits set for fiscal years leading up to 2040. It mandates that taxpayers submit reports from independent certified public accountants to verify their tax credit claims and outlines the responsibilities regarding withholding taxes from payments to independent contractors and loan-out companies. The legislation aims to streamline the process for claiming tax credits while ensuring accountability and proper oversight of film production expenses in the state, ultimately enhancing New Jersey's attractiveness as a destination for film and digital media production.

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