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 aims to bolster the domestic music industry while maintaining existing eligibility criteria for tax credits, such as the percentage of expenses incurred in New Jersey and the submission of a tax credit verification report. The overall structure of the tax credit program remains unchanged, with specified percentages of qualified expenses eligible for tax credits based on the type of production company.

Additionally, the bill outlines a process for taxpayers who apply for tax credits but are unable to receive them due to a cap on available credits, allowing them to claim these credits in the following fiscal year. It also mandates that the New Jersey Economic Development Authority certify any remaining tax credits from one fiscal year to increase the cumulative total for the next fiscal year. The bill introduces new requirements for independent certified public accountants to verify tax credit claims and establishes withholding requirements for payments to loan-out companies and independent contractors. Furthermore, it defines key terms related to the tax credit program, ensuring clarity in eligibility and operational standards for participants.

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