This bill revises New Jersey's film and digital media content production tax credit program, extending the eligibility period for tax credits to productions starting on or after July 1, 2018, and before July 1, 2049. It increases the tax credit for New Jersey studio partners and film-lease production companies to 40% for qualified film production expenses, while other taxpayers will receive a 35% credit. Additionally, if a neighboring state offers a higher tax credit, the New Jersey tax credit for productions near New York City will rise to at least 45%. The bill also introduces a 5% tax credit for certain television series relocating to New Jersey after July 1, 2025, and establishes a 30% tax credit for qualified digital media content production expenses, with specific conditions for eligibility.

Moreover, the bill outlines new definitions and criteria for tax credits, including provisions for the recapture of credits, which will only apply to the initial recipient and not to purchasers of tax credit transfer certificates. It mandates that award agreements require studio partners to occupy their production facilities throughout the commitment period, with recapture provisions for non-compliance. The bill also sets a cumulative cap of $30 million on tax credits for fiscal years up to 2050, with an additional $100 million starting in the fiscal year beginning July 1, 2024. Overall, the legislation aims to enhance New Jersey's appeal as a filming destination by providing clearer guidelines and increased financial support through tax credits while ensuring compliance with specific conditions.

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