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 definitions for "New Jersey film-lease production company" and "New Jersey studio partner," establishing eligibility criteria that require a significant portion of production days to occur within the state and a commitment to lease or occupy designated production facilities. The tax credit for qualified film production expenses is set at 40% for New Jersey studio partners and 35% for other taxpayers, with at least 60% of expenses needing to be incurred for services and goods purchased in New Jersey. Additionally, the bill expands the scope of qualified expenses to include wages for individuals not subject to New Jersey income tax due to reciprocity agreements, specifically targeting Pennsylvania residents.

Furthermore, the bill introduces a 30% tax credit for digital media content production expenses, with a potential increase to 40% for post-production services at New Jersey facilities, contingent upon meeting specific conditions. It establishes a framework for tax credit transfer certificates, allowing taxpayers to sell or assign their credits, and sets cumulative limits on the total value of tax credits available to different categories of taxpayers. The New Jersey Economic Development Authority is tasked with certifying unredeemed credits and ensuring compliance with the new regulations, including a withholding requirement of 6.37% on payments to loan-out companies and independent contractors. Overall, the bill aims to make New Jersey a more attractive destination for film and digital media production by providing substantial financial incentives.

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