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 stipulation is added to the existing conditions that taxpayers must meet to qualify for tax credits, which are set at 40% for New Jersey studio partners, 35% for other taxpayers for film production expenses, and 30% for digital media content production expenses. The bill also maintains current provisions regarding the tax credit verification process, including the necessity for a tax credit verification report and compliance with withholding requirements.

Additionally, the bill establishes a process for taxpayers whose applications for tax credits exceed available credits in a fiscal year, allowing them to carry over claims to the next fiscal year. It introduces new requirements for independent certified public accountants to verify tax credit claims and clarifies definitions related to film production. The bill limits the designation of "New Jersey studio partners" to a maximum of three film production companies and specifies eligibility criteria for tax credits. Overall, the amendments aim to enhance accountability and efficiency within the tax credit program while promoting domestic production of music and scores in conjunction with film and digital media projects.

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