The bill amends New Jersey's tax credit provisions for film and digital media production, extending the eligibility period for tax credits from July 1, 2039, to July 1, 2049. It introduces a tiered tax credit system where New Jersey studio partners can receive a 40% credit for qualified production expenses, while other taxpayers receive 35%, and a new category allows non-studio partners to receive a 30% credit for expenses incurred in a specific geographic area near New York City. The bill also establishes conditions for these credits, including local spending requirements and marketing materials that promote New Jersey as a production destination. Additionally, it allows taxpayers to apply for a tax credit transfer certificate, enabling them to sell or assign their credits to other taxpayers, with a cumulative cap of $100 million in tax credits available annually.

Further provisions include the requirement for independent accountant reports to verify tax credit claims, adjustments to qualified expenses based on discrepancies, and a new withholding requirement for payments to loan-out companies and independent contractors. The bill clarifies definitions related to film production, including expanding the definition of "film" to include ongoing television productions that relocate to New Jersey, and raises the threshold for "highly compensated individuals" from $500,000 to $750,000. It also specifies that tax credits will only be recaptured from the initial recipient and not from purchasers of tax credit transfer certificates. Overall, the bill aims to enhance New Jersey's attractiveness as a film and digital media production hub by providing clearer guidelines and substantial tax incentives.

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