The bill amends New Jersey's Film and Digital Media Tax Credit Program to enhance tax incentives for film and digital media production. It introduces new eligibility criteria for tax credits, allowing New Jersey studio partners and film-lease production companies to receive a 40% tax credit on qualified production expenses, while other taxpayers can receive a 35% credit. The bill mandates that at least 60% of total production expenses must be incurred for services and goods purchased in New Jersey and includes provisions for marketing materials that promote the state as a film destination. Additionally, it establishes a 30% tax credit for digital media content production, with potential increases for post-production services at New Jersey facilities, contingent upon meeting specific conditions.

Significant changes include the introduction of tax credit transfer certificates, allowing taxpayers to sell or assign their credits, and cumulative limits on the total amount of tax credits available for different categories of taxpayers through 2040. The bill also clarifies the definitions of qualified expenses, including wages for individuals exempt from New Jersey income tax due to reciprocity agreements, and introduces new withholding requirements for payments made to loan-out companies and independent contractors. Furthermore, it outlines the authority's role in certifying unredeemed credits and managing applications when total requested credits exceed available amounts, ultimately aiming to make New Jersey a more attractive location for film and digital media production.

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