The bill amends New Jersey's Film and Digital Media Tax Credit Program to broaden the range of production expenses eligible for tax credits, enhancing the state's appeal as a destination for film and digital media production. It establishes a 40% tax credit for New Jersey studio partners and film-lease production companies on qualified expenses, while other taxpayers can receive a 35% credit. Additionally, the bill introduces a 30% tax credit for digital media content production expenses, with potential increases for post-production services. It mandates that at least 60% of total production expenses must be incurred in New Jersey and allows for tax credit transfer certificates, enabling taxpayers to sell or assign their credits.

Key changes include new definitions for "New Jersey film-lease production company" and "New Jersey studio partner," along with specific eligibility criteria for tax credits based on production location and expenses. The bill also requires a 6.37% withholding from payments to loan-out companies and independent contractors, and it expands the definition of qualified expenses to include wages for individuals not subject to New Jersey tax due to reciprocity agreements. Furthermore, it sets cumulative limits on tax credits available for different taxpayer categories through 2040 and allows the New Jersey Economic Development Authority to adjust future allocations based on prior fiscal year outcomes. The act is set to take effect immediately and will apply retroactively from January 1, 2024, for eligible taxpayers.

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