The bill amends New Jersey's Film and Digital Media Tax Credit Program to broaden the eligibility criteria for tax credits by including certain websites and content developed for Internet gaming as qualifying digital media content. It allows taxpayers to receive tax credits ranging from 30% to 40% of their qualified production expenses, depending on their classification as a New Jersey studio partner, film-lease production company, or other taxpayer. The legislation sets forth specific requirements for these tax credits, including minimum spending thresholds on services and goods from New Jersey vendors, and mandates the submission of verification reports by certified public accountants. Additionally, it introduces a non-binding pre-certification process for potential projects and outlines the conditions under which tax credits may be recaptured if a production company fails to meet established qualifications.

The bill also establishes a new designation of "New Jersey studio partner," which refers to film production companies that commit to producing films or audiovisual products in New Jersey and occupy a production facility of at least 250,000 square feet. It specifies that tax credits for these studio partners will be set at 40% of qualified expenses, while other production companies will receive 35%. The legislation emphasizes compliance with defined criteria, including occupancy of designated facilities, and includes provisions for tax credit transfer certificates, allowing taxpayers to sell or assign their credits. Overall, the bill aims to enhance the film and digital media production landscape in New Jersey by providing clear guidelines and financial incentives for companies to establish and maintain operations within the state.

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