The bill revises New Jersey's film and digital media content production tax credit program, enhancing incentives for taxpayers involved in film production. Key amendments include increasing the tax credit percentage 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% for certain qualified expenses. A new provision allows for a tax credit of at least 45% if a neighboring state offers a comparable or greater tax credit. Additionally, the bill introduces a 5% tax credit for television series relocating to New Jersey, applicable for productions starting after July 1, 2025. For digital media, the bill maintains a 30% tax credit but introduces a 35% credit for specific counties and a 40% credit for post-production services at designated facilities.

The bill also establishes a tax credit transfer certificate mechanism, allowing taxpayers to sell or assign their tax credits, and adjusts the cumulative total of tax credits available to various production companies with specific caps for different fiscal years. It clarifies definitions related to film production, including the exclusion of certain productions from the definition of "film" unless they meet specific criteria. The bill mandates that award agreements require studio partners to occupy their production facilities for the commitment period, with conditions for recapturing tax credits if this requirement is not met. Overall, the bill aims to strengthen New Jersey's film production industry by providing clearer guidelines and increased financial incentives while ensuring compliance with local regulations.

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