The bill amends New Jersey's film and digital media content production tax credit program by increasing the tax credit percentages for various taxpayers, specifically raising the credit for New Jersey studio partners from 35% to 40%, for film-lease production companies to 35%, and for other taxpayers to 30%. It introduces an additional tax credit of 4.5% for television series that relocate to New Jersey, applicable for productions starting on or after July 1, 2025, and before July 1, 2049. The bill also establishes a cumulative cap on the total tax credits available, increasing it to $30 million annually until 2050, with an additional $100 million in tax credits starting from the fiscal year beginning July 1, 2024. Furthermore, it allows taxpayers to apply for a tax credit transfer certificate, enabling them to sell or assign their tax credits to other taxpayers.

Additionally, the bill clarifies definitions related to film production and tax credits, including expanding the definition of a "New Jersey film-lease production company" to include members of a taxpayer's combined group and unrelated entities engaged in film production. It specifies that qualified film production expenses can now include script costs and outlines the conditions under which tax credits may be recaptured if a company fails to meet qualifications. The bill also mandates that the director purchase unused tax credits from various programs at specified percentages, ensuring a structured approach to tax credit transactions. Overall, the bill aims to enhance New Jersey's attractiveness as a destination for film and digital media production while ensuring compliance and accountability within the tax credit program.

Statutes affected:
Introduced: 54:10A-5.39, 54A:4-12, 52:18A-263