The bill amends New Jersey's film and digital media content production tax credit program, introducing new criteria for tax credits available to production companies. It establishes a tiered tax credit structure, with New Jersey studio partners eligible for a 40% credit on qualified film production expenses, while other taxpayers may receive 35% or 30% based on their classification and production location. For digital media content production, a 30% credit is available for expenses exceeding $2 million, contingent upon employing full-time workers in New Jersey. The bill also outlines a process for taxpayers to apply for tax credit transfer certificates, which can be sold or assigned, and sets limits on the cumulative total of tax credits available to different categories of production companies.

Additionally, the bill introduces 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 tax credits. It clarifies that tax credits will only be recaptured from the initial recipient and not from subsequent purchasers of tax credit transfer certificates. The legislation emphasizes compliance with reporting and verification requirements, including the submission of reports by independent accountants to verify tax credit claims. Overall, the bill aims to enhance the accountability and efficiency of the tax credit program while promoting local hiring and investment in the state's film industry.

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