In an effort to encourage more film, television and other digital media projects to come to New Jersey, a bill sponsored by Assembly Democrats Gordon Johnson, William Spearman and Raj Mukherji would expand the program. state tax credit for the production of film and digital content.
The legislation was passed by the Assembly and Senate in their entirety on Monday, with a vote of 65-12-0 and 31-2, respectively.
The measure is now heading to the governor.
Digital media projects often deal with post-production activities, such as sound editing and synchronization.
Under the current tax credit program, digital media productions are eligible for tax credits equal to 20% of their eligible expenses in the state or up to 25% of eligible expenses in South Jersey. The measure (A6070 / S4094) would increase the maximum amount of the tax credit for digital media productions to 30% of eligible expenses or 35% in South Jersey – similar to the amount for which film productions are currently eligible. It would also increase the total amount of tax credits that these projects could receive from $ 10 million to $ 30 million.
“Digital media projects are just as important to the entertainment industry and the economy as film projects and deserve the same opportunities to grow and prosper in our state,” said Johnson (D-Teaneck). “This legislation will give New Jersey an even more competitive advantage by further establishing our state as an attractive destination for creative endeavors of all kinds.”
Movie rental partners, who lease or acquire a large New Jersey production facility for five years or more and commit to spending an average of $ 50 million in qualifying expenses each year, are eligible for tax credits. for the tax credit for the production of films and digital multimedia content. program. The legislation revises the program to allow partners who lease part of a film production facility – rather than an entire facility – to be eligible for tax credits, provided they meet the other criteria set out in the program.
“As our state continues to recover from the challenges of the COVID-19 pandemic, we must make it a priority to attract more businesses to New Jersey on behalf of our residents,” said Spearman (D-Woodbury ). “Expanding this vital program to bring in additional film and digital media projects will create new jobs, generate more income for local businesses and ultimately boost our economy. “
The measure further encourages movie rental partners to acquire production facilities in the state by allowing the annual release of an additional $ 100 million at the discretion of the New Jersey Economic Development Authority. Beginning in fiscal 2025, these additional tax credits could be made available using funds remaining from amounts previously allocated to certain programs under the Economic Recovery Act of 2020.
“Film and digital productions are going to be an important component of our state’s economy for years to come as our tax credit program encourages industry growth in New Jersey,” said Mukherji (D -Jersey City). “Countless residents with the talent and skills to work on these creative productions will now have more opportunities to do so. “