New Jersey Department of State New Jersey Department of State
Lt. Governor
Kim Guadagno
On November 3, 2009, the people of New Jersey elected Kim Guadagno as the first Lieutenant Governor in the state's history.
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New Jersey Department of State
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Motion Picture and Television Development Commission

NJCA 18:7-3B. Film and Digital Media Tax Credits
Reorganization Plan 03-2011 Governor Chris Christie
NJSA 34:1B-22. Short title

This act shall be known as the "Motion Picture and Television Development Act" .

L.1977, c. 44, s. 1, eff. March 22, 1977.

NJSA 34:1B-23. Legislative findings and determinations

The Legislature finds and determines that the economy of the State of New Jersey has suffered considerably in recent years because of the inflation and employment problems confronting this Nation; that the development of a strong motion picture and television industry would contribute substantially to the improvement of the State's economy; that the development of a strong motion picture and television industry would contribute to the social well-being of the State and its people; that New Jersey offers outstanding and unique human and natural resources for the development of a strong motion picture and television industry; that New Jersey's efforts and programs in the production of motion picture and television enjoy great public support and encouragement; and that the State requires an agency to promote the development of a viable State motion picture.

L.1977, c. 44, s. 2, eff. March 22, 1977.

NJSA 34:1B-24. Motion Picture and Television Development Commission.

3. a. There is hereby established in but not of the Division of Business Assistance, Marketing, and International Trade in the New Jersey Economic Development Authority a Motion Picture and Television Development Commission.

b.The commission shall consist of eight public members, no more than four of whom shall be members of the same political party, who shall be appointed by the Governor with the advice and consent of the Senate, and the Chairman of the New Jersey State Council on the Arts, and the Commissioner of Labor and Workforce Development or their designees serving in an ex officio capacity. The Governor shall appoint from the ten members a chairman who shall serve in that office at the pleasure of the Governor.

c.The public members of the commission shall be appointed initially for the following terms: three members for a term of two years; three members for a term of three years; and two members for a term of four years. The initial members shall serve from the date of the original appointment for the aforementioned specified terms and until their respective successors shall be duly appointed and qualified. The term of each such appointed member shall be designated by the Governor at the time of his appointment. The successors to the initially appointed members shall each be appointed for a term of four years, except that any person appointed to fill a vacancy shall serve only for the unexpired term.

d.The members of the commission shall serve without compensation, but the commission may reimburse its members for necessary expenses incurred in the discharge of their duties.

L.1977, c.44, s.3; amended 1979, c.199, s.72.

NJSA 34:1B-25. Organization; vote required; executive director and other employees

The Motion Picture and Television Development Commission shall organize itself in such manner as it deems desirable and necessary, but no action shall be taken or motion or resolution adopted by the commission except by an affirmative vote of a majority of the authorized members of said body. The commission may appoint and employ an executive director and such other professional, technical, and clerical assistants as it may require, without regard to the provisions of Title 11, Civil Service, of the Revised Statutes.

L.1977, c. 44, s. 4, eff. March 22, 1977.

NJSA 34:1B-26. Annual report

On or before December 31 of each year, the Motion Picture and Television Development Commission shall make an annual report of its activities for the Governor and the Legislature.

L.1977, c. 44, s. 5, eff. March 22, 1977.

NJSA 34:1B-27. Powers.

6.The Motion Picture and Television Development Commission shall have the following powers:

a.To adopt such rules and regulations as it deems advisable with respect to the conduct of its own affairs.

b.To hold hearings, and to do or perform any acts which may be necessary, desirable or proper to carry out the purposes of this act.

c.To request and obtain from any department, division, board, bureau, commission, or other agency of the State or of any county, municipality, authority or other political subdivision within the State such assistance and data as will enable it properly to carry out its powers and duties hereunder.

d.To accept any federal funds granted, by act of Congress or by Executive Order, for all or any of the purposes of this act.

e.To accept any gifts, donations, bequests, or grants of funds from private and public agencies for all or any of the purposes of this act.

f.To coordinate the activities of similar councils or boards appointed by any city or county within the State for all or any of the purposes of this act.

g.To create advisory councils necessary for the performance of responsibilities pursuant to this act and to appoint members thereto.

h.To directly secure any and all location permits from any department, division, board, bureau, commission, or other agency of the State or from any county, municipality, authority, or other political subdivision within the State for applicants interested in motion picture and television production within the State.

i. to establish reasonable fees, pursuant to the provisions of the "Administrative Procedure Act," for the services provided by the commission.

L.1977,c.44,s.6; amended 2003, c.117, s.44.

NJSA 34:1B-28. Programs to promote motion picture and television industry

The Motion Picture and Television Development Commission shall prepare and implement programs to promote a motion picture and television industry within the State. Such a program shall include but not be limited to:

a. The preparation and distribution of appropriate promotional and informational materials pointing out desirable locations within the State, explaining the benefits and advantages of producing within the State, and detailing the services available at the State and local level and within industry;

b. Facilitate cooperation from local government, State and Federal government agencies and private sector groups in regard to applications, locations, production, and ancillary facilities;

c. Cooperate with all sections of management and labor engaged in the motion picture and television industry.

L.1977, c. 44, s. 7, eff. March 22, 1977.

NJSA 34:1B-233. Transfer of Motion Picture and Television Development Commission.

24. a. The Motion Picture and Television Development Commission, established pursuant to section 3 of P.L.1977, c.44 (C.34:1B-24), is transferred in, but not of, the Division of Business Assistance, Marketing, and International Trade in the New Jersey Economic Development Authority, but notwithstanding this transfer, the Motion Picture and Television Development Commission shall be independent of any supervision and control by the authority or by any board or officer thereof.

b.Whenever, in any law, rule, regulation, order, contract, document, judicial or administrative proceeding or otherwise, reference is made to the Motion Picture and Television Development Commission, the same shall mean and refer to the Motion Picture and Television Development Commission in, but not of, the division.

c.The Division of Business Assistance, Marketing, and International Trade shall provide staff services necessary to support the functions of the Motion Picture and Television Development Commission.

L.2008, c.27, s.24.

NJSA 52:27C-86. Status of Motion Picture and Television Development Commission.

26. a. The Motion Picture and Television Development Commission, established pursuant to P.L.1977, c.44 (C.34:1B-22 et seq.), is transferred in but not of the Department of the Treasury, but notwithstanding this transfer, the Motion Picture and Television Development Commission shall be independent of any supervision and control by the department or by any board or officer thereof. Notwithstanding the provisions of any law, rule, regulation or order to the contrary, the Board of Directors of the New Jersey Commerce Commission shall appoint the Executive Director of the Motion Picture and Television Development Commission.

b.Whenever, in any law, rule, regulation, order, contract, document, judicial or administrative proceeding or otherwise, reference is made to the Motion Picture and Television Development Commission, the same shall mean and refer to the Motion Picture and Television Development Commission in but not of the Department of the Treasury.

c.This transfer shall be subject to the provisions of the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.).

d.The Motion Picture and Television Development Commission may, subject to the commission's approval, develop and promulgate such rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as are necessary to implement the provisions of this act and to effectuate the purposes of the Motion Picture and Television Development Commission as provided by law.

L.1998, c.44, s.25; amended 2007, c.253, s.37.

NJSA 52:27H-14. New Jersey motion picture and television development commission in department of labor and industry; continuance and transfer to department

The New Jersey Motion Picture and Television Development Commission in the Department of Labor and Industry, established pursuant to P.L.1977, c. 44 (C. 34:1B-22 et seq.), together with all its powers, functions and duties, is continued and transferred to the Department of Commerce and Economic Development. This act shall not affect the terms of office of the present members of the commission. The members of the commission shall continue to be appointed as provided by existing law, except that the Commissioner of Commerce and Economic Development shall also serve as an ex officio member of the commission.

L.1981, c. 122, s. 15, eff. April 16, 1981.

NJSA 54:10A-5.39. Corporation business tax credit for certain film production, digital media content expenses; definitions.

1. a. A taxpayer, upon application to the Director of the Division of Taxation in the Department of the Treasury and the New Jersey Economic Development Authority, shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 20 percent of the qualified film production expenses of the taxpayer during a privilege period commencing after the effective date of P.L.2005, c.345, provided that (1) at least 60 percent of the total film production expenses, exclusive of post-production costs, of the taxpayer will be incurred for services performed and goods used or consumed in New Jersey, and (2) principal photography of the film commences within 150 days after the approval of the application for the credit.

b.A taxpayer, upon application to the Director of the Division of Taxation in the Department of the Treasury and the New Jersey Economic Development Authority, shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount up to 20 percent, as determined by the authority of the qualified digital media content production expenses of the taxpayer during a privilege period commencing after the effective date of P.L.2007, c.257, provided that at least $2,000,000 of the total digital media content production expenses of the taxpayer will be incurred for services performed and goods used or consumed in New Jersey and at least a significant percentage, as determined by the authority, of the qualified digital media content production expenses of the taxpayer will include wages and salaries paid to one or more new full-time employees in New Jersey. For purposes of this subsection, "new full-time employee" means a person employed by the taxpayer for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, whose wages are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or who is a partner of a taxpayer that is an eligible partnership, who works for the partnership for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose distributive share of income, gain, loss, or deduction, or whose guaranteed payments, or any combination thereof, is subject to the payment of estimated taxes, as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., and who is determined by the authority to work in a newly created permanent position according to criteria it develops. "New full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the taxpayer. In determining the amount of any grant of tax credits made pursuant to this subsection, the authority shall consider the number of new full-time positions created by the taxpayer as well as the quality of the full-time positions created, including but not limited to the salaries and benefits provided to new full-time employees. The authority, in consultation with the Division of Taxation, shall establish rules for the recapture of all, or a portion of, the grant of tax credits pursuant to this subsection in the event the taxpayer fails to maintain the new full-time positions that were included in calculating the qualified digital media content production expenses of the taxpayer.

c.The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for a privilege period, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.

d.A taxpayer may, with an application for a credit provided for in subsection a. or subsection b. of this section, apply to the director and the executive director of the authority for a tax credit transfer certificate in lieu of the taxpayer being allowed any amount of the credit against the tax liability of the taxpayer. The director and the executive director of the authority may consult with the New Jersey Motion Picture and Television Development Commission in consideration of any application for approval of a tax credit or tax credit transfer certificate under this section. The tax credit transfer certificate, upon receipt thereof by the taxpayer from the director and the authority, may be sold or assigned, in full or in part, to any other taxpayer that may have a tax liability under P.L.1945, c.162 or N.J.S.54A:1-1 et seq., in exchange for private financial assistance to be provided by the purchaser or assignee to the taxpayer that has applied for and been granted the credit. The certificate provided to the taxpayer shall include a statement waiving the taxpayer's right to claim that amount of the credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) that the taxpayer has elected to sell or assign. The sale or assignment of any amount of a tax credit transfer certificate allowed under this section shall not be exchanged for consideration received by the taxpayer of less than 75% of the transferred credit amount. Any amount of a tax credit transfer certificate used by a purchaser or assignee against a tax liability under P.L.1945, c.162 shall be subject to the same limitations and conditions that apply to the use of a credit pursuant to subsection c. of this section. Any amount of a tax credit transfer certificate obtained by a purchaser or assignee under subsection a. of this section may be applied against the purchaser's or assignee's tax liability under N.J.S.54A:1-1 et seq. and shall be subject to the same limitations and conditions that apply to the use of a credit pursuant to section 2 of P.L.2005, c.345 (C.54A:4-12).

e.As used in this section:

"Digital media content" means any data or information that is produced in digital form, including data or information created in analog form but reformatted in digital form, text, graphics, photographs, animation, sound and video content. "Digital media content" does not mean content offerings generated by the end user (including postings on electronic bulletin boards and chat rooms); content offerings comprised primarily of local news, events, weather or local market reports; public service content; electronic commerce platforms (such as retail and wholesale websites); websites or content offerings that contain obscene material as defined pursuant to N.J.S.2C:34-2 and N.J.S.2C:34-3; websites or content that are produced or maintained primarily for private, industrial, corporate or institutional purposes; or digital media content acquired or licensed by the taxpayer for distribution or incorporation into the taxpayer's digital media content.

"Film" means a feature film, a television series or a television show of 15 minutes or more in length, intended for a national audience. "Film" shall not include a production featuring news, current events, weather and market reports or public programming, talk show, game show, sports event, award show or other gala event, a production that solicits funds, a production containing obscene material as defined under N.J.S.2C:34-2 and N.J.S.2C:34-3, or a production primarily for private, industrial, corporate or institutional purposes.

"Qualified digital media content production expenses" means an expense incurred in New Jersey for the production of digital media content. Qualified digital media content production expenses shall include but shall not be limited to wages and salaries of individuals employed in the production of digital media content on which the tax imposed by the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. has been paid or is due; the costs of computer software and hardware, data processing, visualization technologies, sound synchronization, editing, and the rental of facilities and equipment. Qualified digital media content production expenses shall not include expenses incurred in marketing, promotion or advertising digital media or other costs not directly related to the production of digital media content. Costs related to the acquisition or licensing of digital media content by the taxpayer for distribution or incorporation into the taxpayer's digital media content shall not be qualified digital media content production expenses.

"Qualified film production expenses" means an expense incurred in New Jersey for the production of a film including post-production costs incurred in New Jersey. Qualified film production expenses shall include but shall not be limited to wages and salaries of individuals employed in the production of a film on which the tax imposed by the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. has been paid or is due; the costs of construction, operations, editing, photography, sound synchronization, lighting, wardrobe and accessories and the cost of rental of facilities and equipment. Qualified film production expenses shall not include expenses incurred in marketing or advertising a film.

"Total digital media content production expenses" means costs for services performed and property used or consumed in the production of digital media content.

"Total film production expenses" means costs for services performed and tangible personal property used or consumed in the production of a film.

"Post-production costs" means the costs of the phase of production that follows principal photography, in which raw footage is cut and assembled into a finished film with sound synchronization and visual effects.

f.The Director of the Division of Taxation in the Department of the Treasury, in consultation with the New Jersey Motion Picture and Television Development Commission and the New Jersey Economic Development Authority, shall adopt rules in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as are necessary to implement this act including examples of qualified film production and digital media content production expenses and the procedures and forms to apply for a credit and for a tax credit transfer certificate necessary for a taxpayer to sell or assign an amount of tax credit under this section. The value of credits, including tax credits allowed through the granting of tax credit transfer certificates, approved by the director and the authority pursuant to subsection a. of this section and pursuant to section 2 of P.L.2005, c.345 (C.54A:4-12) shall not exceed a cumulative total of $10,000,000 in any fiscal year to apply against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), and the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. If the cumulative total amount of credits and tax credit transfer certificates allowed to taxpayers for privilege periods or taxable years commencing during a single fiscal year under subsection a. of this section and section 2 of P.L.2005, c.345 (C.54A:4-12) exceeds the amount of credits available in that year, then taxpayers who have first applied for and have not been allowed a credit or tax credit transfer certificate amount for that reason shall be allowed, in the order in which they have submitted an application, the amount of tax credit or certificate on the first day of the next succeeding fiscal year in which tax credits and tax credit transfer certificates under subsection a. of this section and section 2 of P.L.2005, c.345 (C.54A:4-12) are not in excess of the amount of credits available. The value of credits, including tax credits allowed through the granting of tax credit transfer certificates, approved by the director and the authority pursuant to subsection b. of this section shall not exceed a total of $5,000,000 in any fiscal year to apply against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). If the total amount of credits and tax credit transfer certificates allowed to taxpayers for privilege periods or taxable years commencing during a single fiscal year under subsection b. of this section exceeds the amount of credits available in that year, then taxpayers who have first applied for and have not been allowed a credit or tax credit transfer certificate amount for that reason shall be allowed, in the order in which they have submitted an application, the amount of tax credit or certificate on the first day of the next succeeding fiscal year in which tax credits and tax credit transfer certificates under subsection b. of this section are not in excess of the amount of credits available. The Executive Director of the New Jersey Economic Development Authority, in conjunction with the Director of the Division of Taxation shall prepare and submit a report to the Governor and the Legislature on the effectiveness of the credit as an incentive for encouraging film productions and digital media content productions to locate in New Jersey which shall be completed before the third taxable year or privilege period in which a credit may be claimed.

g.For the purpose of determining eligibility for or the amount of any grant of tax credits pursuant to this section, the authority shall not include any job that is included in the calculation of a business employment incentive grant pursuant to the provisions of P.L.1996, c.26 (C.34:1B-124 et al.) or a business retention and relocation grant pursuant to P.L.1996, c.25 (C.34:1B-112 et seq.).

L.2005, c.345, s.1; amended 2007, c.257, s.1.

NJSA 54A:4-12. Gross income tax credit for certain film production expenses; definitions.

2. a. A taxpayer, upon application to the Director of the Division of Taxation in the Department of the Treasury and the New Jersey Economic Development Authority, shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 20 percent of the qualified film production expenses of the taxpayer during a taxable year commencing after the effective date of P.L.2005, c.345, provided that (1) at least 60 percent of the total production expenses, exclusive of post-production costs, of the taxpayer will be incurred for services performed and goods used or consumed in New Jersey, and (2) principal photography of the film commences within 150 days after the approval of the application for the credit.

b.The amount of the credit allowed pursuant to this section shall be applied against the tax otherwise due under N.J.S.54A:1-1 et seq. after all other credits and payments. If the credit exceeds the amount of tax otherwise due, that amount of excess shall be an overpayment for the purposes of N.J.S.54A:9-7.

c.A taxpayer may, with an application for a credit provided for in subsection a. of this section, apply to the director and the executive director of the authority for a tax credit transfer certificate in lieu of the taxpayer being allowed any amount of the credit against the tax liability of the taxpayer. The director and the executive director of the authority may consult with the New Jersey Motion Picture and Television Development Commission in consideration of any application for approval of a tax credit or tax credit transfer certificate under this section. The tax credit transfer certificate, upon receipt thereof by the taxpayer from the director and the authority, may be sold or assigned, in full or in part, to any other taxpayer that may have a tax liability under N.J.S.54A:1-1 et seq. or P.L.1945, c.162 (C.54:10A-1 et seq.), in exchange for private financial assistance to be provided by the purchaser or assignee to the taxpayer that has applied for and been granted the credit. The certificate provided to the taxpayer shall include a statement waiving the taxpayer's right to claim that amount of the credit against the tax imposed pursuant to N.J.S.54A:1-1 et seq., that the taxpayer has elected to sell or assign. The sale or assignment of any amount of a tax credit transfer certificate allowed under this section shall not be exchanged for consideration received by the taxpayer of less than 75% of the transferred credit amount. Any amount of a tax credit transfer certificate used by a purchaser or assignee against a tax liability under N.J.S.54A:1-1 et seq., shall be subject to the same limitations and conditions that apply to the use of a credit pursuant to subsection b. of this section. Any amount of a tax credit transfer certificate obtained by a purchaser or assignee under this section may be applied against the purchaser's or assignee's tax liability under P.L.1945, c.162 and shall be subject to the same limitations and conditions that apply to the use of a credit pursuant to section 1 of P.L.2005, c.345 (C.54:10A-5.39).

d.A partnership shall not be allowed a credit under this section directly, but the amount of credit or tax credit transfer certificate of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit or certificate acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year. For the purposes of subsection b. of this section, the amount of tax liability that would be otherwise due of a taxpayer is that proportion of the total liability of the taxpayer that the taxpayer's share of the partnership income or gain included in gross income bears to the total gross income of the taxpayer. The provisions of subsection c. of this section shall apply to the amount of any credit or certificate of a taxpayer in respect of a distributive share of partnership income.

e.As used in this section:

"Film" means a feature film, a television series or a television show of 15 minutes or more in length, intended for a national audience. Film shall not include a production featuring news, current events, weather and market reports or public programming, talk show, game show, sports event, award show or other gala event, a production that solicits funds, a production containing obscene material as defined in N.J.S.2C:34-2 and N.J.S.2C:34-3, or a production primarily for private, industrial, corporate or institutional purposes.

"Qualified film production expenses" means an expense incurred in New Jersey for the production of a film including post-production costs incurred in New Jersey. Qualified film production expenses shall include but shall not be limited to wages and salaries of individuals employed in the production of a film on which the tax imposed by the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. has been paid or is due; the costs of construction, operations, editing, photography, sound synchronization, lighting, wardrobe and accessories and the cost of rental of facilities and equipment. Qualified film production expenses shall not include expenses incurred in marketing or advertising a film.

"Total film production expenses" means costs for services performed and tangible personal property used or consumed in the production of a film.

"Post production costs" means the costs of the phase of production that follows principal photography, in which raw footage is cut and assembled into a finished film with sound synchronization and visual effects.

f.The Director of the Division of Taxation in the Department of the Treasury, in consultation with the New Jersey Motion Picture and Television Development Commission and the New Jersey Economic Development Authority, shall adopt rules in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as are necessary to implement this act including examples of qualified film production expenses and the procedures and forms to apply for a credit and for a tax credit transfer certificate necessary for a taxpayer to sell or assign an amount of tax credit under this section. The amount of credits, including tax credits allowed through the granting of tax credit transfer certificates, approved by the director and the authority pursuant to subsection a. of this section and pursuant to section 1 of P.L.2005, c.345 (C.54:10A-5.39) shall not exceed a cumulative total of $10,000,000 in any fiscal year to apply against the tax imposed under N.J.S.54A:1-1 et seq., and the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). If the cumulative total amount of credits and tax credit transfer certificates allowed to taxpayers for taxable years or privilege periods commencing during a single fiscal year under this section and subsection a. of section 1 of P.L.2005, c.345 (C.54:10A-5.39) exceeds the amount of credits available in that year, then taxpayers who have first applied for and have not been allowed a credit or tax credit transfer certificate amount for that reason shall be allowed, in the order in which they have submitted an application, the amount of tax credit or certificate on the first day of the next succeeding fiscal year in which tax credits and tax transfer certificates under this section and subsection a. of section 1 are not in excess of the amount of credits available. The Executive Director of the New Jersey Economic Development Authority, in conjunction with the Director of the Division of Taxation shall prepare and submit a report to the Governor and the Legislature on the effectiveness of the credit as an incentive for encouraging film productions to locate in New Jersey which shall be completed before the third taxable year or privilege period in which a credit may be claimed.

L.2005, c.345, s.2; amended 2007, c.257, s.2.

NJAC 18:7-3B. FILM AND DIGITAL MEDIA TAX CREDITS
NJAC 18:7-3B.1. Applicability and scope

The rules in this subchapter are promulgated by the New Jersey Division of Taxation in consultation with the New Jersey Motion Picture and Television Development Commission and the New Jersey Economic Development Authority to implement P.L. 2005, c. 345 and P.L. 2007, c. 257. P.L. 2005, c. 345 establishes a corporation business tax and gross income tax benefit and tax certificate transfer program not in excess of $ 10,000,000 per year, for fiscal years 2006 through 2015 for up to 20 percent of certain film production expenses. P.L. 2007, c. 257 added provisions establishing a corporation business tax benefit and tax certificate transfer program not in excess of $ 5,000,000 per fiscal year.

HISTORY:
Amended by R.2009 d.143, effective May 4, 2009.
See: 40 N.J.R. 6944(a), 41 N.J.R. 2049(b).
Inserted "and P.L. 2007, c. 257", substituted the second occurrence of "P.L. 2005, c. 345" for "That act", inserted "tax" preceding "certificate", and inserted the last sentence.

NJAC 18:7-3B.2. Definitions

The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

"Authority" means the New Jersey Economic Development Authority.

"Buying business" means a taxpayer with the financial ability to purchase unused tax credits.

"Certificate" means the certificate issued by the Division of Taxation certifying to the selling business amounts of film tax credit being sold. The certificate shall state that the transferor waives its right to claim the credit shown on the certificate. The certificate shall show the program year to which it is applicable and the vintage year in which the expenses were paid. Certificates may be issued annually.

"Digital media content" means any data or information that is produced in digital form, including data or information created in analog form but reformatted in digital form, text, graphics, photographs, animation, sound and video content. Digital media content does not mean content offerings generated by the end user (including postings on electronic bulletin boards and chat rooms); content offerings comprised primarily of local news, events, weather or local market reports; public service content; electronic commerce platforms (such as retail and wholesale website); websites or content offerings that contain obscene material as defined pursuant to N.J.S.A. 2C:34-2 and 2C:34-3; websites or content that are produced or maintained primarily for private, industrial, corporate or institutional purposes; or digital media content acquired or licensed by the taxpayer for distribution or incorporation into taxpayer's digital media content.

"Film" means a feature film, a television series or a television show of 15 minutes or more in length, intended for a national audience. "Film" shall not include a production featuring news, current events, weather and market reports or public programming, talk show, game show, sports event, award show or other gala event, a production that solicits funds, a production containing obscene material as defined under N.J.S.A. 2C:34-2 and 3, or a production primarily for private, industrial, corporate or institutional purposes.

"Film Commission" means the New Jersey Motion Picture and Television Commission.

"Loan out company" means a personal service corporation that employs an actor or actress, hired by a production company. The loan out company is owned or controlled by the actress or actor being hired. Such production company expenditures paid to a loan out company may appear to be a different type of production expenditure, but some or all of the expenditure may actually constitute a payment for the employment of the actor or actress.

"New full-time employee" means a person employed by the taxpayer for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, whose wages are subject to withholding as provided in the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., or who is a partner of a taxpayer that is an eligible partnership, who works for the partnership for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose distributive share of income, gain, loss or deduction, or whose guaranteed payments, or any combination thereof, is subject to the payment of estimated taxes, as provided in the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., and who is determined by the Authority to work in a newly created permanent position according to criteria it develops. "New full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the taxpayer.

"Post-production costs" means the costs of the phase of production that follows principal photography, in which raw footage is cut and assembled into a finished film with sound synchronization and visual effects. Such costs include, but are not limited to, insurance, publicity, product placement, general expenses, insurance claims, and completion costs contingency.

"Principal photography" means the filming of major and significant portions of a qualified film that involves the lead actors or actresses.

"Privilege period" means the calendar or fiscal accounting period for which a tax is payable under the Corporation Business Tax Act. See N.J.S.A. 54:10A-4(j).

"Production phases for an animated film" means generally that time after the preproduction phase when models are drawn on paper and then created in the computer, and the actual production phase begins when the models are finished and the staff begins to choreograph, animate, and render the animations. However, much of the post-production work may be done simultaneously with the work done in the production phase because the two are so interlinked.

"Program" means the Film Production Expenses Tax Certificate Transfer Program.

"Program year" means the fiscal year of the State during which the program is in operation. For example, July 1, 2005 through June 30, 2006 is Program year 2006; July 1, 2006 through June 30, 2007 is Program year 2007.

"Qualified digital media content production expense" means an expense incurred in New Jersey for the production of digital media content. Qualified digital media content production expenses shall include, but not be limited to, wages and salaries of individuals employed in the production of digital media content on which the tax imposed by the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., has been paid or is due; the costs of computer software and hardware, data processing, visualization technologies, sound synchronization, editing and the rental of facilities and equipment. Qualified digital media content production expenses shall not include expenses incurred in marketing, promotion or advertising digital media or other costs not directly related to the production of digital media content. Costs related to the acquisition or licensing of digital media content by the taxpayer for distribution or incorporation into the taxpayer's digital media content shall not be qualified digital media content production expenses.

"Qualified film production expenses" means expenses incurred in New Jersey for the production of a film, including post-production costs incurred in New Jersey. Such expenses shall include, but shall not be limited to:

1. Wages and salaries of individuals employed in the production of a film on which the tax imposed by the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., has been paid or is due;

2. The costs of construction, operations, editing, photography, sound synchronization, lighting, wardrobe and accessories and the cost of rental of facilities and equipment;

3. Payments made for the story and other rights, writing, producer and staff, director and staff, talent, and fringe benefits, provided that the seller of the property or service is subject to income or franchise taxation in New Jersey; and/or

4. Payments made to a loan out company, authorized to do business in New Jersey, that are attributable to acting, writing, or directing but not payments made to a loan out company that are attributable to marketing or advertising. In-State loan out companies do qualify, as long as the star is on call within the State. If the star spends any part of the day in-State, that constitutes a day. A business telephone call made from outside the State does not qualify, unless the star also is physically present in the State.

Qualified film production expenses shall not include expenses incurred in marketing or advertising a film.

"Selling business" means a taxpayer that has unused tax credits, which it wishes to sell.

"Taxable year" means the calendar or fiscal accounting period for which a tax is payable under the Gross Income Tax Act. See N.J.S.A. 54A:1-2(k).

"Taxation" means the New Jersey Division of Taxation.

"Tax credit vintage year" means the applicant's last taxable year or privilege period in which the expenses were incurred. Seller's and Buyer's vintage years are not equated.

"Total digital media content production expenses" means costs for services performed and property used or consumed in the production of digital media content.

"Total production expenses" means costs for services performed and tangible personal property used or consumed in the production of a film.

HISTORY:
Amended by R.2009 d.143, effective May 4, 2009.
See: 40 N.J.R. 6944(a), 41 N.J.R. 2049(b).
Added definitions "Digital media content", "New full-time employee", "Qualified digital media content production expense" and "Total digital media content production expenses".

NJAC 18:7-3B.3. Eligibility

(a) A taxpayer shall be eligible to apply to the program if the Authority finds that:

1. The taxpayer will incur qualified film production expenses during a privilege period, provided that at least 60 percent of the total production expenses, exclusive of post-production costs, will be incurred for services performed and goods used or consumed in New Jersey; and

2. Principal photography within 150 days after the approval of the application for the credit.

(b) For the purpose of determining eligibility for the amount of any grant of corporation business tax credits for qualified film production expenses, the Authority shall not include amounts from any job that is included in the calculation of a business employment incentive grant pursuant to the provisions of P.L. 1996, c. 26 (N.J.S.A. 34:1B-124 et seq.) or a business retention and relocation grant pursuant to P.L. 1996, c. 25 (N.J.S.A. 34:1B-112 et seq.).

HISTORY:
Amended by R.2009 d.143, effective May 4, 2009.
See: 40 N.J.R. 6944(a), 41 N.J.R. 2049(b).
Added (b).

NJAC 18:7-3B.4. Application to the program

(a) Applications shall be submitted to the Authority and shall be considered for approval on a first in time basis.

(b) A completed application shall include, but not be limited to, the following:

1. A projected budget for the film project with a breakout of costs, including post-production costs;

2. A breakout of costs, including post-production costs, to be incurred for services performed and goods used or consumed in New Jersey;

3. A breakout of costs, including post-production costs, to be incurred in New Jersey;

4. If a film project will extend to more than one privilege period or taxable year, applications shall be submitted with the information required in (b)1, 2, and 3 above for each such privilege period or taxable year;

5. A description of the project, which must include:

i. A plot summary;

ii. The genre and subject matter;

iii. The anticipated film rating, if applicable;

iv. Principals;

v. Actors; and

vi. Filming locations;

6. The filming schedule;

7. The anticipated or actual date of commencement of principal photography;

8. If the applicant is a partnership or limited liability company, a list of members or owners applying for a tax credit under this program, including the percentage of ownership interest of each; and

9. The applicant's New Jersey privilege period or taxable year.

(c) The overestimation of qualified production expenses will decrease the credit by the amount of the overestimation.

NJAC 18:7-3B.5. Transfer of tax credits; evaluation process

(a) Film production tax credits shall be awarded subsequent to the occurrence of each and all of the following:

1. Receipt by the Authority of written confirmation from the Film Commission that principal photography commenced within 150 days of approval;

2. Receipt by the Authority of actual budgets and proof of qualified film production expenses, including a listing of the name of the company or person paid, his, her or its Federal identification number and a certified public accountant's certification that expenses claimed by the applicant were incurred in New Jersey;

3. Verification by Taxation of partners or members of pass through entities such as partnerships or LLCs; and

4. Final approval of the credit by Taxation and the Board of the Authority, taking into account the applicant's full compliance with applicable tax laws and with the law and rules relating to the application process.

(b) Taxation shall issue tax credit certificates within 30 days of receipt from the Authority evidencing its final approval.

1. In the case of entities taxed as partnerships for New Jersey purposes, the certification shall be issued to the entity, and the names of the partners will appear on the certificate. The credit shall be allocated to the partners based on profit and loss sharing agreements. Each partner shall claim its proportionate share of its credit on its own tax return.

(c) Only the members of the Authority can deny an applicant's eligibility for the program established by P.L. 2005 c. 345. (Eligibility criteria for the Program are set forth in N.J.A.C. 18:7-3B.2.)

(d) When the members of the Authority deny a request, the minutes of the meeting at which such denial occurs are submitted to the Governor.

(e) The members' action is effective 10 working-days after the Governor's receipt of the minutes, provided no veto has been issued.

(f) An applicant may appeal the Board's action by submitting in writing to the Authority, within 20 days from the date of the Board's action, an explanation of how the applicant has met the program criteria. The Authority cannot consider any new information about the project developed after the June 30 submission deadline. Only that information that clarifies the application filed shall be reconsidered. In the event the company is reconsidered as eligible, its application shall be presented at the next available Board meeting.

(g) The amount of the credit applied under N.J.S.A. 54:10A-5.39 against the corporation business tax for a privilege period, when taken together with any other credits allowed against that tax, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L. 1945, c. 162.

(h) The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be determined by the Director of the Division of Taxation.

(i) The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of the section or under other provisions of the corporation business tax, may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.

NJAC 18:7-3B.6. Award of tax credits

(a) When all of the required information is received, the Authority shall perform its review based on the following minimum criteria:

1. The threshold criteria of eligibility shall be the applicant's expenses meeting the definition of qualified film production expenses and principal photography beginning within 150 days of approval.

2. If a taxpayer wishes to sell tax credits that it is entitled to claim, then within 60 days of the completion of the film, the taxpayer shall provide the Authority with:

i. A certification of the actual expenditures incurred for the film;

ii. A statement that the credit has not and will not be claimed on a tax return;

iii. A signed request that a tax transfer certificate should be issued; and

iv. An executed buy-sell agreement showing the party to whom the taxpayer has agreed to sell the credits, the value agreed to between them, and the name of the buyer of the credits.

(b) After completing its review under (a) above, the Authority shall make a preliminary determination of the merits of the request and the applicant's adherence to the statutory requirements of the program. Upon this determination being made, the applicant shall receive notification of preliminary approval that will state the conditions that must be met before the Authority will issue final approval, if any. The notification of preliminary approval shall state that the Authority will forward the application to Taxation only upon receipt of the following:

1. A Buying Business/Taxpayer Information Sheet, which identifies the buyer, the amount of tax benefits to be sold, and the selling price;

2. A Tax Benefit Identification Form on which the applicant has listed the amount of tax benefits it wishes to sell and the years in which film production expenses were incurred; and

3. An executed form of the standard selling agreement, with the Private Financial Assistance Form attached as an exhibit.

(c) Within 30 days of receipt of a completed transfer request, the Authority shall review the buy-sell agreement and other documentation supporting the transfer request. If the Authority approves the transfer request, then the Authority shall provide Taxation a copy of the signed agreement and a statement advising Taxation of the amounts of the expenditures that are creditable to specific fiscal years of the State of New Jersey. If the transfer certificate is being issued to a partnership, the names of all partners must be furnished to Taxation. The tax transfer certificate is issued in the name of the partnership or buying business. If the Authority finds that the documentation supporting the transfer request is incomplete, insufficient or unresponsive, it shall issue a letter to the requestor stating that the request has been denied.

(d) Taxation shall issue the new credit certificate in the name of the buying business and its partners, if it is taxed as a partnership.

(e) The amount of consideration from a buying business to a selling business for a tax credit certificate must be at least 75 percent of the value of the tax credit as determined by the Division of Taxation, and the consideration is deemed to be taxable business income for New Jersey gross income tax purposes and corporation business tax purposes.

NJAC 18:7-3B.7. Examples of prioritization of credits among applicants

The following examples illustrate the method used to make credits available to applicants:

Example 1 On the first day that applications may be submitted, five companies submit applications totaling $ 10 million, which are all accepted and approved.

Company A applies for a credit with $ 2 million in eligible expenses.

Company B applies for a credit with $ 2 million in eligible expenses.

Company C applies for a credit with $ 2 million in eligible expenses.

Company D applies for a credit with $ 2 million in eligible expenses.

Company E applies for a credit with $ 2 million in eligible expenses.

Each company begins principal photography within 150 days of acceptance, and when reviewed each company's actual budgets and documentation pass the 60 percent test.

Since the total applications received and approved do not exceed the $ 10 million cap per State fiscal period, each applicant is awarded tax credits of $ 2 million.

Example 2 On the first day that applications may be submitted for fiscal year (FY) 2007, three companies submit applications totaling $ 8 million, which are all accepted and approved. No other applications are received during the remainder of the State's FY 2007 period.

Company A applies for a credit with $ 2 million in eligible expenses.

Company B applies for a credit with $ 3 million in eligible expenses.

Company C applies for a credit with $ 3 million in eligible expenses.

Each company begins principal photography within 150 days of acceptance and when reviewed each company's actual budgets and documentation pass the 60 percent test.

Company C's actual eligible expenses for the period are $ 4 million.

Since the total applications received and approved do not exceed the $ 10 million cap for FY 2007, each applicant is awarded tax credits as requested of $ 2 million for Company A, $ 3 million for Company B, and $ 3 million for Company C. Even though credit funds are still available, Company C is only entitled to claim a credit up to the amount projected and tentatively approved on its original application of $ 3 million.

Since no prior FY-period-approved applications are pending, the remainder of the $ 10 million for FY 2007 of $ 2 million is not available to be used.

Example 3 On the first day that applications may be submitted for FY 2007, three companies submit applications for total credits of $ 6 million. They are all accepted and approved.

Company F applies for a credit with $ 2 million in eligible expenses.

Company G applies for a credit with $ 2 million in eligible expenses.

Company H applies for a credit with $ 2 million in eligible expenses.

Company J applies for a credit with $ 7 million in eligible expenses on day two.

Since the total credit applications received and approved on day one do not exceed the $ 10 million per FY cap of $ 10 million, Companies F, G, and H are each given a tentative approval for a credit of up to $ 2 million.

Company J is given a tentative approval of up to $ 4 million for the FY 2007, the balance of the $ 10 million cap, and a tentative approval of up to $ 3 million for the FY 2008 period.

All companies begin principal photography within 150 days of acceptance.

Companies F and G's actual expenditures meet the 60 percent test and eligible expenditures meet the $ 2 million limit. As such companies F and G can each claim a $ 2 million film tax credit in their corresponding tax period.

Company H meets the 60 percent test but its eligible expenses are only $ 1.5 million. As such Company H can only claim a credit of $ 1.5 million in its corresponding tax period.

The State will notify Company J that an additional $ 500,000 in tax credits from the FY 2007 period is available for it to use.

Company J meets the 60 percent test and its qualified expenses are at least $ 7 million.

Company J can claim its FY 2007 credit of $ 4.5 million in its corresponding tax period and the balance of its tax credit of $ 2.5 million in its tax period that corresponds with the State's FY 2008 period.

Example 4 On the first day that applications may be submitted for FY 2007, five companies submit applications for total credits of $ 20 million, which are all accepted and approved.

Company A applies for a credit with $ 2 million in eligible expenses.

Company B applies for a credit with $ 6 million in eligible expenses.

Company C applies for a credit with $ 4 million in eligible expenses.

Company D applies for a credit with $ 3 million in eligible expenses.

Company E applies for a credit with $ 5 million in eligible expenses.

All of the companies begin principal photography within 150 days of acceptance, and their eligible expenses meet or exceed that projected in their applications.

Each applicant will receive tentative approval for the FY 2007 on a prorated amount based on the total credits tentatively approved multiplied by the total amount of credits available for the FY of $ 10 million.

Company A for FY 2007 will receive a tentative credit approval of $ 1 million.

$ 2 million/$ 20 million X $ 10 million = $ 1 million

The balance of $ 1 million is carried forward to FY 2008.

Company B for FY 2007 will receive a tentative credit approval of $ 3 million.

$ 6 million/$ 20 million X $ 10 million = $ 3 million

The balance of $ 3 million is carried forward to FY 2008.

Company C for FY 2007 will receive a tentative credit approval of $ 2 million.

$ 4 million/$ 20 million X $ 10 million = $ 2 million

The balance of $ 2 million will be carried forward to FY 2008.

Company D for FY 2007 will receive a tentative credit approval of $ 1.5 million.

$ 3 million/$ 20 million X $ 10 million = $ 1.5 million.

The balance of $ 1.5 million will be carried forward to FY 2008.

Company E for FY 2007 will receive a tentative credit approval of $ 2.5 million.

$ 5 million/$ 20 million X $ 10 million = $ 2.5 million.

The balance of $ 2.5 million will be carried forward to FY 2008.

The excess application amounts above the $ 10 million cap for FY 2007 are carried forward to FY 2008. Companies A, B, C, D, and E remain in their same sequence in FY 2008 as they occupied in FY 2007. Each of these companies will receive the balance of their credits in FY 2008 totaling $ 10 million. Any applications received in FY 2008 will be approved in the order received, but the tentative credits approved will not be available until FY 2009.

Example 5 A corporation that operates on a fiscal reporting period ending November 30 applies for a film credit of $ 5 million and receives tentative approval from the Authority on April 1, 2007, for a FY 2007 credit of $ 1.5 million and a FY 2008 credit of $ 3.5 million. Filming begins May 1, 2007, and is completed on November 1, 2007. The project meets the 60 percent test and eligible expenses for the project exceed $ 5 million.

The corporation on its New Jersey CBT-100 for tax year ending November 30, 2007 can claim a film credit of up to $ 5 million, since its tax year bridges both FY 2007 and FY 2008.

v Example 6 A corporation that operates on a fiscal reporting period ending April 30 applies for a film credit of $ 5 million and receives tentative approval from the Authority on February 1, 2007 for a FY 2007 credit of $ 1.5 million and a FY 2008 credit of $ 3.5 million. Filming begins March 1, 2007, and is completed on November 1, 2007. The project meets the 60 percent test and eligible expenses for the project exceed $ 5 million.

The corporation on its New Jersey CBT-100 for tax year ending April 30, 2007, can claim a film credit of up to $ 1.5 million only since its tax period ends within FY 2007. On its CBT-100 for tax year ending April 30, 2008, it can claim any unused portion of the FY 2007 credit and the FY 2008 credit of $ 3.5 million.

NJAC 18:7-3B.8. Credit for qualified digital media content production expenses

(a) A credit against the tax imposed pursuant to section 5 of P.L. 1945, c. 162, (N.J.S.A. 54:10A-5) shall be allowed in an amount up to 20 percent, as determined by the Authority, of the qualified digital media content production expenses of the taxpayer during a privilege period.

(b) In order to be eligible for the credit, the taxpayer shall incur at least $ 2,000,000 of total digital media content production expenses of the taxpayer for services performed and goods used or consumed in New Jersey. At least 50 percent of the $ 2,000,000 of total digital media content production expenses ($ 1,000,000) shall consist of wages and salaries for full-time digital media employees in New Jersey. The taxpayer shall create and maintain a minimum of 10 new full-time digital media jobs with an annual salary of at least $ 65,000. The taxpayer shall utilize the remainder of the expense requirement to create full-time digital media jobs with an annual salary of at least $ 36,000.

(c) In determining the amount of any grant of tax credits for qualified digital media content production expenses, the Authority shall consider the number of new full-time jobs created by the taxpayer, as well as the quality of the full-time jobs created, including, but not limited to, the salaries and benefits provided to new full-time employees.

(d) For the purpose of determining eligibility for or the amount of any grant of corporation business tax credits for qualified digital media content production expenses, the Authority shall not include amounts from any job that is included in the calculation of a business employment incentive (BEIP) grant pursuant to the provisions P.L. 1996, c. 26 (N.J.S.A. 34:1B-124 et seq.) or a business retention and relocation grant (BRRAG) pursuant to P.L. 1996, c. 25 (N.J.S.A. 34:1B-112 et seq.). If a business participating in a BEIP grant or receiving assistance from the BRRAG Program for the same capital investment, employees or site, seeks to qualify for the digital media tax credit program, it shall first repay and terminate assistance pursuant to the rules governing the Business Employment Incentive Program or Business Retention and Relocation Assistance Grant Program, as applicable, before applying for the digital media tax credit program.

(e) In the event the taxpayer fails to maintain the new full-time jobs that were included in calculating the qualified digital media content production expenses of the taxpayer, the grant of tax credits for qualified digital media content production expenses shall be recaptured according to the following schedule: failure to maintain the jobs during the first year following the award of tax credits: 100 percent recapture; failure to maintain the jobs during the second year following the award of tax credits: 66 percent recapture; failure to maintain the jobs during the third year following the award of tax credits: 33 percent recapture. Recapture tracking will begin once the applicant has received the tax credits.

(f) Qualified digital media content production expenses credits shall be awarded subsequent to the occurrence of each and all of the following:

1. Receipt by the Authority of documentation of current digital media jobs, plans for new jobs, BEIP/BRRAG grants received by the taxpayer and current non-digital media jobs;

2. Receipt by the Authority of actual budgets and proof of at least $ 2,000,000 of qualified digital media content production expenses incurred, including at least $ 1,000,000 of such expenses are for digital media salaries of new full-time employees in New Jersey, the creation of 10 new quality full-time digital media jobs in New Jersey paid annually at least $ 65,000, with the remainder of qualifying full-time digital media employees counted in the $ 1,000,000 of qualifying expenses, paid annually at least $ 36,000 each. The application shall include a listing of each person paid, his or her Federal identification number and a certified public accountant's certification that verifies the total digital media content production expenses claimed by the applicant were incurred in New Jersey, at least 50 percent of the total digital media content production expenses were for digital media salaries and that the applicant has met all the requirements and conditions of the statute and rules; and

3. Final approval of the credit by Taxation and the Authority, taking into account the applicant's full compliance with applicable tax laws and with the law and rules relating to the application process.

(g) The value of qualified digital media content production expenses credit and tax credit transfer certificates approved by Taxation and the Authority shall not exceed $ 5,000,000 in any fiscal year to apply against the corporation business tax. If the total amount of qualified digital media content production expenses credit and tax credit transfer certificates allowed to taxpayers for privilege periods or taxable years commencing during a single fiscal year exceeds the amount of credits available for that year, then in the order in which they have submitted an application, taxpayers who have first applied for and have not been allowed a credit or tax credit transfer certificate amount for that reason shall be allowed the amount of tax credit or certificate on the first day of the next succeeding fiscal year in which tax credit and tax credit transfer certificates are not in excess of the amount of credits available.

HISTORY:
New Rule, R.2009 d.143, effective May 4, 2009.
See: 40 N.J.R. 6944(a), 41 N.J.R. 2049(b).

Reorganization Plan 03-2011 Governor Chris Christie
A plan for the transfer of the division of business assistance, marketing, and international trade, and its functions, powers, and duties from the new jersey economic development authority to the Department of State

PLEASE TAKE NOTICE that on June 29, 2011, Governor Chris Christie hereby issues this Reorganization Plan, No. 003-2011 (the "Plan"), to transfer the Division of Business Assistance, Marketing, and International Trade, commonly known as the Business Retention and Attraction Division (hereinafter referred to as the "Division") , within the New Jersey Economic Development Authority (the "Authority"), to the Department of State (the "Department"), thereby promoting efficiency and effectiveness in the operations of the executive branch by streamlining the management and execution of important business- related priorities of the State. This Plan furthers the efforts of the Executive Branch to implement the recommendations of the Red Tape Review Group created by Executive Order No. 3 (2010). In its April 19, 2010 report, the Red Tape Review Group endorsed a new model for job creation and retention, and economic growth and investment in the State, via the consolidation of existing economic development programs to a central entity under the supervision of the Lieutenant Governor in her capacity as Secretary of State.

GENERAL STATEMENT OF PURPOSE: The purpose of this Plan is to streamline important management and execution responsibilities with respect to business-related priorities of the State. The Division was established following a 2008 State government realignment pursuant to which certain business-related functions previously performed by the New Jersey Commerce Commission were transferred to the Authority. Division staff are responsible for focusing on domestic and international business attraction, expansion, and retention efforts, as well as outreach and planning functions and maintenance of a business call center.

In 2010, the Administration announced the commencement of a multifaceted outreach and business-assistance effort headed by the Lieutenant Governor in her capacity as Secretary of State. The effort included organizational as well as strategic elements to attract new businesses to New Jersey and help existing businesses thrive by focusing on increased relationship-building and person-to-person outreach, coordinated promotion of state incentives and resources, and enhanced assistance for businesses navigating state government programs and processes.The Lieutenant Governor's efforts include the creation of the Business Action Center to serve as a comprehensive resource for all businesses located in, or considering relocation to, the State. Since that time, the Department and the Authority have entered into, and operated effectively under, a Memorandum of Understanding pursuant to which Authority personnel from the Division work closely with Department staff to support the efforts of the Business Action Center. This arrangement has proven successful in bringing increased customer services and coordination for businesses looking to remain, expand, or locate in New Jersey.

Consistent with the goals of that effort, the purpose of this Plan is to improve efficiency, promote coordination, and improve quality in the performance of the responsibilities of the Division by transferring its functions, powers, and duties to the Department to support the Business Action Center. Accordingly, this Plan transfers the Division and all of its functions, powers, duties, and personnel to the Department.

NOW, THEREFORE, in accordance with the provisions of the Executive Reorganization Act of 1969, P.L. 1969, c.203 (C.52:14C-1 et seq.), I find, with respect to the transfer providedfor in this Plan, that it is necessary in order to accomplish the purposes set forth in Section 2 of that Act and will do the following:

  • 1. Promote the better execution of the laws, the more effective management of the Executive branch and of its agencies and functions, and the expeditious administration of the public business;
  • 2. Promote economy consistent with the efficient operation of the Executive;
  • 3. Increase the efficiency of the operations of the Executive;
  • 4. Group, co-ordinate, and consolidate functions of the Executive according to major purposes; and
  • 5. Eliminate overlapping and duplication of effort.

PROVISIONS OF THE REORGANIZATION PLAN:
Therefore, I hereby order the following reorganization:

  • 1. The Division of Business Assistance, Marketing, and International Trade created pursuant to P.L. 2008, c. 27 (C.34:1B-210 et seq.), commonly known as the Business Retention and Attraction Division, including the Motion Picture and Television Development Commission ("Motion Picture Commission") created pursuant to P.L. 1977, c. 44 (C.34:1B-24), which is in, but not of, the Division, within the New Jersey Economic Development Authority is transferred to the Department of State.
  • 2. All of the powers, functions, and duties exercised by the Division, including the powers, functions, and duties of the Motion Picture Commission, are continued, transferred to, and vested in the Department, to be organized within the Department as determined by the Secretary of State, in support of the operations of the Business Action Center.
  • 3. All files, books, papers, records, equipment, other property held by or on behalf of the Division, including, without limitation, funds and other resources, and personnel are transferred to the Department, pursuant to the "State Agency Transfer Act," P.L. 1971, c.375 (C.52:14D-1 et seq.), and funds are to be deposited in such accounts as may be required by law.
  • 4. Whenever, in any law, rule, regulation, contract, order, document, judicial or administrative proceeding, or otherwise, reference to the Division of Business Assistance, Marketing, and International Trade or the Business Retention and Attraction Division within the New Jersey Economic Development Authority is made, the same shall mean the Business Action Center in the Department of State, and whenever in any law, rule, regulation, order, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the Motion Picture and Television Development Commission, the same shall mean and refer to the Motion Picture and Television Development Commission in, but not of, the Business Action Center, except where the context clearly requires otherwise.

GENERAL PROVISIONS:

  • 1. I find that each aspect of this reorganization is necessary to accomplish the purposes set forth in Section 2 of P.L. 1969, c. 203. Specifically, this reorganization will promote economy to the fullest extent consistent with the efficient operation of the Executive Branch according to major purposes. It will group, coordinate, and consolidate functions in a more consistent and practical manner and eliminate overlapping and duplication of functions.
  • 2. Any section or part of this Plan that conflicts with Federal law or regulations shall be considered null and void unless and until addressed and corrected through an interagency agreement, Federal waiver, or other means.
  • 3. All acts and parts of acts and reorganization plans or parts of reorganization plans inconsistent with the provisions of this Plan are superseded to the extent of such inconsistencies.
  • 4. If any provision of this Plan, or the application thereof to any person, or circumstance, or the exercise of any power or authority thereunder, is held invalid or contrary to the law, such holding shall not affect other provisions or applications of the Plan, or affect other exercises or power or authority under such provisions not contrary to law. To this end, the provisions of this Plan are declared to be severable.
  • 5. This Plan is intended to protect and promote public health, safety, and welfare, and shall be liberally construed to attain the objectives and effect the purposes thereof.
  • 6. All transfers directed by this Plan shall be effected pursuant to the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.)
  • 7. A copy of this Reorganization Plan was filed on June 29, 2011 with the Secretary of State and with the Office of Administrative Law for publication in the New Jersey Register. This Plan shall become effective at the end of a period of 60 calendar days after the date of filing, unless disapproved by each House of the Legislature by the passage of a concurrent resolution stating in substance that the Legislature does not favor this Reorganization Plan, or at a date later than the end of such 50-calendar day period after the date of filing, should the Governor establish such a later date of the Plan, or any part thereof, by Executive Order.

PLEASE TAKE NOTICE that this Plan, if not disapproved, has the force and effect of law and will be printed and published in the annual edition of the Public Laws and in the New Jersey Register under the heading of "Reorganization Plans."