The 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 from 35% to 40%, while reducing the credit for other taxpayers from 35% to 30%. Additionally, it introduces a provision for a tax credit of up to 45% if a contiguous state offers a higher credit and an extra 5% credit for television series relocating to New Jersey after July 1, 2025. The bill also establishes specific requirements for tax credits related to digital media content production, including a minimum expenditure of $2 million on services from New Jersey vendors and a requirement that at least 50% of expenses be for wages paid to New Jersey employees.

Furthermore, the bill amends existing laws regarding tax credits, including provisions that prevent the recapture of tax credits from purchasers or assignees of tax credit transfer certificates. It clarifies definitions related to film production, such as excluding certain types of productions from the definition of "film" unless they meet specific criteria. The bill also introduces new definitions for terms essential for determining eligibility for tax credits and establishes conditions under which tax credits may be recaptured if commitments regarding occupancy of production facilities are not met. Overall, the legislation aims to enhance New Jersey's attractiveness as a destination for film and digital media production by providing substantial financial incentives and clearer guidelines for compliance.

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