The bill amends New Jersey's film and digital media content production tax credit program to expand eligibility for tax credits, particularly for wages and salaries of employees not subject to New Jersey Gross Income Tax due to reciprocity agreements with other states. It allows designated taxpayers, such as New Jersey studio partners and film-lease production companies, to receive a tax credit of 40% on qualified film production expenses, while other taxpayers can receive a 35% credit, contingent upon meeting specific conditions. The bill also establishes a minimum expenditure requirement of $2,000,000 in New Jersey for digital media content production and mandates that at least 50% of these expenses must be allocated to wages and salaries for New Jersey employees.

Additionally, the legislation introduces a mechanism for tax credit transfer certificates, enabling taxpayers to sell or assign their credits to others for financial assistance. It sets a cumulative cap of $100 million in tax credits for certain fiscal years, with provisions for increased allocations based on performance in prior years. The bill also clarifies definitions related to qualified film production expenses, including payments to loan-out companies, and outlines the responsibilities of taxpayers regarding withholding taxes. Overall, the bill aims to enhance New Jersey's attractiveness as a film production destination while ensuring compliance with tax regulations and improving the accountability of film production expenses.

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