The bill amends New Jersey's Film and Digital Media Tax Credit Program by introducing a requirement that all original music and musical scores for film and digital media productions must be produced and recorded domestically within the United States or its territories. This new condition is added to the existing criteria for taxpayers to qualify for tax credits, which are set at 40% for New Jersey studio partners and 35% for other production companies based on their qualified film production expenses. The bill also includes provisions for digital media content production, offering a 30% tax credit under specific conditions. Additionally, it makes technical adjustments by deleting certain language related to tax credit verification reports and withholding requirements while inserting the new domestic music production requirement.

Furthermore, the bill establishes a process for taxpayers who apply for tax credits but are not approved due to a lack of available credits, allowing them to receive their credits in the following fiscal year when credits become available. It mandates that approved tax credits must be certified by the New Jersey Economic Development Authority if they fall below the cumulative total allowed in a fiscal year. The legislation also introduces new compliance requirements for taxpayers, including the submission of reports prepared by independent certified public accountants to verify tax credit claims, and outlines withholding requirements for payments made to loan-out companies and independent contractors. Overall, the bill aims to enhance the film and digital media production industry in New Jersey by providing structured financial incentives while ensuring accountability and compliance.

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