This bill amends the Film and Digital Media Tax Credit Program in New Jersey, establishing new tax credits for qualified film production and digital media content production expenses. Taxpayers designated as New Jersey studio partners can receive a 40% credit, while New Jersey film-lease production companies are eligible for a 35% credit, and other taxpayers can receive a 30% credit. The bill outlines specific eligibility criteria, including the requirement for a significant portion of expenses to be incurred through New Jersey vendors and the inclusion of marketing materials that promote New Jersey as a film destination. Additionally, it introduces provisions for tax credit transfer certificates, allowing taxpayers to sell or assign their credits, and sets cumulative limits on the total value of tax credits available to different categories of taxpayers.

Furthermore, the bill establishes new requirements for New Jersey studio partners regarding their occupancy of production facilities, mandating that they occupy these facilities for the entire commitment period to retain their tax credits. It also introduces a non-binding pre-certification process for potential projects and requires independent accountant reports to verify tax credit claims. The legislation clarifies definitions related to film production and outlines the conditions under which tax credits can be recaptured if a production company fails to meet its obligations. Overall, the bill aims to incentivize film and digital media production in New Jersey while ensuring compliance with state regulations and fostering economic growth in the industry.

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