This bill amends 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 not subject to the New Jersey Gross Income Tax due to reciprocity agreements with other states, such as Pennsylvania. It introduces definitions for "total digital media content production expenses" and "total film production expenses," which now encompass these wages and payments made to loan-out companies for services performed by exempt individuals. Additionally, the definition of "full-time or full-time equivalent employee" is revised to include those whose compensation is exempt from New Jersey taxation under such agreements.

The legislation also establishes a cumulative cap on tax credits available to various categories of taxpayers, including New Jersey studio partners and film-lease production companies, with specific limits set for fiscal years leading up to 2040. It allows for the transfer of tax credits between taxpayers and mandates that taxpayers submit reports from independent certified public accountants to verify their claims. The changes are set to take effect immediately and will be retroactive to January 1, 2024, for taxpayers who have not yet received a tax credit certificate, providing a streamlined process to enhance the state's film production industry.

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