The bill amends New Jersey's film and digital media content production tax credit program, extending the eligibility period for tax credits from July 1, 2039, to July 1, 2049. It increases the tax credit for New Jersey studio partners from 35% to 40% and introduces an additional 4.5% tax credit for television series relocating to New Jersey after July 1, 2025. The bill also establishes different tax credit percentages based on the type of taxpayer, with film-lease production companies receiving a 35% credit and other taxpayers receiving a 30% credit for qualified film production expenses. Additionally, it allows for a 30% tax credit for digital media content production expenses incurred after July 1, 2018, and introduces a 40% credit for post-production services performed at New Jersey film-lease partner facilities.

Furthermore, the bill includes provisions for tax credit transfer certificates, enabling taxpayers to sell or assign their credits, and sets cumulative limits on the total value of tax credits available to different types of production companies. It clarifies definitions related to film production, such as expanding the definition of "film" to include ongoing television productions and modifying the definition of "highly compensated individual" to reflect a compensation threshold of $750,000. The bill also mandates that taxpayers submit verification reports prepared by independent accountants to substantiate their tax credit claims and outlines the responsibilities of taxpayers regarding withholding taxes from payments to contractors and loan-out companies. Overall, the legislation aims to enhance the film production industry in New Jersey by providing structured tax incentives and ensuring compliance with designated requirements.

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