The New Jersey Economic Development Authority (NJEDA) has opened applications for film production facilities seeking a designation that will facilitate their access to a pool of tax credits designed to encourage the development of large, long-term film production facilities in the state. Under the New Jersey Film and Digital Media Tax Credit Program, which was expanded and enhanced by the Economic Recovery Act of 2020, as a complement to the program for individual film production projects, an additional and separate allocation was established to support projects led by Film-lease Partner Facilities.

A Film-lease Partner Facility designation application is available for studio developers who own, lease, or operate a production facility of at least 250,000 square feet for a period of five years or more. To be eligible to apply, applicants must have site control, and at least preliminary site plan approval, an executed redevelopment agreement, or an adopted redevelopment plan that contemplates the construction of a film studio. Following the approval of the designation, the owner or developer needs to be able to provide a temporary or permanent certificate of occupancy for the site within 36 months. Additionally, as condition of the facility designation, the owner or developer of these facilities are required to partner with NJEDA and accept an equity investment in the project by the Authority. There is a total of two designations available for Film-lease Partner Facilities.

The film-lease partner facility designation is not an award of tax credits; however, the designation allows for future tenants of a designated Film-lease Partner Facility to receive increase tax credit awards for filming in New Jersey. The award increases apply if the designated facility’s tenant qualifies as a “film-lease production company”. To qualify, the production company must occupy space at designated film-lease partner facility, film at least 50 percent of the total project shoot days in New Jersey and at least 50 percent of the New Jersey shoot days at the designated facility.

Applications for projects who qualify under the film-lease production company designation are allowed an increased base tax credit of 40% and can qualify excess above-the-line wage and salary payments which are normally capped at $750,000 per person. In addition to the increase award calculations, film-lease production company projects have access to a separate allocation of $150 million annually and benefit from a separate project queue.

For full program details and to access the application, please visit https://www.njeda.gov/film/. Specific questions may be directed to FilmTaxCredit@njeda.gov.