The New Jersey Film & Digital Media Tax Credit Program provides a transferable credit against the corporation business tax and the gross income tax for certain expenses incurred for the production of certain films and digital media content in New Jersey.

The goal of the program is to incentivize production companies to film and create digital media content in New Jersey.

The Film Tax Credit Application Is Available Online

• Download NJ Tax Credit Program for Film and Digital Media  - Full Law
• Download Highlights of Tax Credit Program for Filmmakers
• Download Frequently Asked Questions - New Jersey Economic Development Authority
• Link To Frequently Asked Questions - New Jersey Division of Taxation
• Application Forms and Additional Information
• Agreed Upon Procedures for CPA Verification Report

Click here for more information about forming or checking the status of a business in New Jersey
https://www.nj.gov/state/njfilm/regulations-registering.shtml

Should you require additional information, please call us at (973) 648-6279.

2% or 4% DIVERSITY BONUS

New Jersey, in an effort to create a more inclusive workforce, offers an additional incentive (2% or 4%) to productions that meet certain diversity criteria. Developed to align with wider industry initiatives, the Diversity Bonus aims to increase diversity onscreen (the actors involved, the content of stories) and behind the cameras (the composition of the crews, the diversity of companies involved in production). This initiative helps to ensure that opportunities are available to qualified New Jersey residents of all backgrounds.

For more information on the Diversity Bonus visit the New Jersey Economic Development Authority’s website:
https://www.njeda.com/film/ (taking special note of the Diversity tab)

From there, you will find links to the following forms:

Form A - Diversity Plan
https://www.njeda.com/wp-content/uploads/pdfs/Diversity-Plan-Form-v2.pdf

Form B – Diversity Tracker
https://www.njeda.com/wp-content/uploads/pdfs/Diversity-Tracking-Sheet-Form-B.pdf

Questions? Contact the New Jersey Motion Picture & Television Commission or the New Jersey Economic Development Authority.

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, two additional and separate allocations were established to support projects led by Studio Partners and Film-lease Partners.

To be eligible to apply for the Studio Partner designation, the applicant must be a production company that has site control of a production facility that is at least 250,000 square feet for at least 10 years. Additionally, prior to approval, the production facility site would need to have at least preliminary site plan approval, an executed redevelopment agreement, or an adopted redevelopment plan that contemplates the construction of the production facility and, following designation approval, be able to provide temporary or permanent certificate of occupancy for the facility within 36 months. Only three Studio Partner designations are available, which will be awarded on a first-come, first-served basis to eligible applicants.

In addition to a separate $100 million pool of incentives, the Studio Partner designation will allow a production company to capture additional above-the-line salaries and wages as part of its tax credit award calculation, a key feature of the plan.

Film-lease Partners must be production companies that have at least a Letter of Intent or other site control documentation for a production facility of at least 50,000 square feet for a term of at least five years. Additionally, the applicant shall commit to spending, on an annual average basis, $50 million in qualified film production expenses over the applicant’s commitment period.

Studio Partners and Film-lease Partners would first apply to the Authority to be designated and then submit subsequent applications for each film project produced in New Jersey thereafter. There are no restrictions on the number of production companies that can receive the Film-lease Partner designation.

The tax credit award percentage for Studio and Film-lease Partners is calculated the same as the legacy program for film productions, however Studio and Film-lease Partners benefit from a separate approval queue and separate annual allocation of $100 million for each designation category.

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

Certain tangible property used directly and primarily in the production of films and television programs is exempt from New Jersey's sales tax. This tangible property includes the purchase of replacement parts for machinery, tools and other supplies, the purchase of lumber and hardware to build sets, the rental of picture cars, the purchase or rental of other types of props, and costs related to the repair of camera and lighting equipment. To view the entire law, click here:

• Download Law Granting Filmmakers Special Exemption From State Sales Tax
• Download Exempt Use Certificate (Form St-4) and Instructions
• Download Sales and Use Tax Exemption For Filmmakers - Overview
• Download Step-By-Step Instructions for utilizing the Sale Tax Exemption

Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States. Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors.

Learn more about Opportunity Zones In New Jersey