This bill amends New Jersey's film and digital media content production tax credit program by refining the eligibility criteria and requirements for taxpayers seeking these credits. It establishes tax credits of 40% for New Jersey studio partners and 35% for New Jersey film-lease production companies on qualified production expenses incurred during a specified period. The bill introduces new conditions, including a minimum percentage of expenses to be incurred through New Jersey vendors, the timing of principal photography, and the inclusion of marketing materials that promote New Jersey as a filming location. Additionally, it sets forth provisions for digital media content production, offering a 30% credit for qualified expenses and additional percentages for expenses incurred in certain counties or for post-production services.

Moreover, the bill allows for the transfer of tax credits through a tax credit transfer certificate, enabling taxpayers to sell or assign their credits to others. It establishes cumulative limits on the total tax credits available to different categories of taxpayers, with specific amounts allocated for each fiscal year. The bill also introduces new definitions and clarifications regarding qualified film production expenses, including script costs and out-of-state producer fees, while imposing caps on certain expenses. Overall, the legislation aims to enhance the film and digital media industry in New Jersey by providing clearer guidelines, promoting local hiring, and ensuring compliance with tax credit eligibility requirements.

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